Truck manufacturer Scania, which had planned to source its battery cells exclusively from Swedish company Northvolt, is reportedly exploring partnerships with other battery cell manufacturers due to financial difficulties faced by Northvolt. Meanwhile, the German government is engaging in ongoing discussions with Northvolt to support the construction of its planned factory in northern Germany.
Recent reports indicate that Northvolt is facing challenges in meeting production targets and securing necessary funding. This has led companies like BMW to reconsider their supply agreements, with suggestions that BMW has canceled a substantial order. In response to financial strains, Northvolt has announced efforts to raise $300 million through a funding round.
Scania’s CEO, Christian Levin, previously emphasized the company’s commitment to Northvolt, stating that future electric vehicles would be equipped with Northvolt batteries. However, Levin acknowledged that Scania is now in discussions with multiple suppliers to mitigate potential risks. “We talk to everyone in order to make sure that we are not going to end up in problems if they [Northvolt] have problems,” Levin told Reuters, though he declined to name the alternative manufacturers.
Despite exploring other options, Levin reiterated support for Northvolt, highlighting the company’s environmentally friendly battery production. “We support them in any way we can,” he said. Scania and Northvolt have collaborated on developing specialized electric truck batteries, reflecting a shared vision for sustainable transportation.
Scania, part of Volkswagen’s Traton Group, aims for electric trucks to constitute 50% of its sales by 2030, up from the current 1%. Volkswagen, which holds a 21% stake in Northvolt, had previously signed a supply contract worth $14 billion over ten years. However, uncertainties remain about Northvolt’s ability to fulfill these commitments, with reports suggesting that other Volkswagen subsidiaries may have adjusted their orders.
Northvolt has also faced operational challenges. The company announced plans to reduce its workforce by approximately 1,600 positions in Sweden and has suspended the expansion of its cell factory in Skellefteå. In March, Northvolt began constructing a cell factory in Heide, northern Germany, initially scheduled to open in 2026. The timeline is now under reconsideration.
The state government of Schleswig-Holstein intends to provide Northvolt with €137 million in funding this year, followed by €564 million from the federal government, to support the Heide project.
Udo Philipp, State Secretary in the Federal Ministry for Economic Affairs and Climate Protection, stated that the German government is “in constant dialogue with the company and the Swedish government regarding the restructuring work in Sweden. The activities of the German government and its involvement in the talks serve to stabilise the further development of Northvolt’s cell production in Germany and – as a prerequisite – also the business activities of the parent company in Sweden.”
