Scania Diversifies Battery Supply Chain as Northvolt Faces Uncertainty

Scania secures alternative battery suppliers after Northvolt files for bankruptcy protection. Find out how this impacts the European electric truck industry.

Swedish truck manufacturer Scania is diversifying its battery supply chain, securing deals with alternative suppliers in response to the ongoing financial troubles of Northvolt. Once considered Europe’s flagship battery maker, Northvolt filed for Chapter 11 bankruptcy protection in the US in November 2024 and is now undergoing restructuring.

For Scania, this situation has prompted a strategic shift. The company, which had heavily relied on Northvolt to support its push for sustainable transport, now faces the challenge of ensuring a stable battery supply for its electric truck production.

Northvolt’s struggles highlight a broader issue—the difficulty of establishing an independent European battery industry. The company’s financial problems have raised concerns among manufacturers aiming to reduce reliance on Asian battery suppliers. Supply chain disruptions have already slowed the pace of truck electrification. In 2024, Scania delivered only 266 electric trucks, falling significantly short of expectations.

Another major hurdle is the high cost of battery systems. Industry analysts estimate that the production costs for electric trucks remain 2.5 to 3 times higher than those of diesel trucks, with prices needing to drop by at least 50% for EVs to become truly competitive.

Despite these challenges, the market is still progressing. Forecasts suggest that by 2025, electric trucks could account for 24% of total truck sales in Europe—provided that production costs decrease and charging infrastructure expands. Major automakers are revising their strategies, while EU policymakers are considering supportive measures for the industry.

How Northvolt’s situation unfolds and its impact on Scania and other industry players remains uncertain. However, one thing is clear: Europe's battery sector is facing a crucial test that will determine its resilience and long-term viability.

Source: automotiveworld.com