Scania, the truck manufacturing subsidiary of Volkswagen, has agreed to acquire Industrial Division of Northvolt Systems to strengthen its off-road electrification capabilities.

The deal includes the takeover of a production facility, a research and development centre, and approximately 260 employees.

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Northvolt Systems Industrial Division’s operations are split between two sites including a leased production site in Gdańsk, Poland, and an R&D center located in Tomteboda, Stockholm, Sweden.

The unit is engaged in development and manufacturing of battery systems tailored for heavy industry applications, including material handling, construction equipment, and mining.

The acquisition is expected to allow Scania to enhance its electrification capabilities for off-road applications, expanding its diversified product portfolio.

Scania Power Solutions head Sara Hermansson said: “Northvolt Systems Industrial Division brings valuable expertise in battery technology and assembly.

“Their capabilities strengthen our modular approach and support the development of complete electrified solutions for off-road applications. I’m pleased to welcome the team to Scania.”

The newly acquired division will operate as an independent entity within Scania Ventures and New Business, serving as a partner to Scania Power Solutions.

Scania Ventures and New Business energy & infrastructure head Jonas Hernlund said: “By combining Northvolt Systems Industrial Division’s battery expertise with Scania’s deep industry knowledge, we are not only driving innovation but also strengthening our ability to serve our customers in their transition journeys.

“This acquisition demonstrates how Scania Ventures and New Business leverage our capabilities in opportunity identification, M&A, and growth-stage company management to enable our core business and enhance our position as a transformation partner for our customers — all in support of a more sustainable transport system.”

Scania’s purchase of Northvolt Systems Industrial Division follows an agreement with the trustee overseeing the bankruptcy proceedings.

Last month, Northvolt filed for bankruptcy in Sweden as a result of financial and operational challenges.

The move also comes amid geopolitical instability, rising capital costs, supply chain disruptions, and shifts in market demand.

Scania, which is part of Volkswagen’s truck unit Traton, had initially offered to buy Northvolt Systems Industrial in February 2025 for $6m, reported Reuters.

However, the bankruptcy had temporarily stalled the acquisition plans.

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