Scania’s acquisition of Northvolt Systems’ Industrial Division deepens its battery capabilities and supports electrification efforts for heavy-duty vehicles in mining, construction, and material handling.

The acquisition includes Northvolt Systems’ battery pack production assets and R&D capabilities, which will be integrated into Scania’s electrification division. Northvolt Systems has primarily focused on battery systems for industrial applications in heavy-duty vehicles.

The move follows a bankruptcy filing by Northvolt in early 2025 and marks the first sale of assets since the collapse. It also deepens the existing relationship between Scania and Northvolt, who have collaborated on battery cell technologies since 2017. Bringing industrial battery systems development in-house will allow Scania to better integrate electrification and powertrain innovation, while enabling more direct control over system design, lifecycle optimisation, and cost structure.

Electrification in off-road segments remains at an earlier stage than in passenger and commercial transport, largely due to challenges associated with energy density, charging infrastructure, and duty cycle demands. However, OEMs and Tier 1 suppliers are beginning to prioritise this area as the industry faces increasing pressure to decarbonise operations.

While volumes of electric heavy-duty off-road vehicles are expected to remain relatively low in the near term, early integration of battery system design and manufacturing is viewed as a strategic move for OEMs seeking long-term cost efficiencies, performance improvements, and supply chain resilience. Scania’s acquisition positions it to compete more aggressively in a segment where specialised, electrified solutions are becoming increasingly important.