Scania in talks with EV battery suppliers, CEO says
Scania wants half of its vehicle sales to come from electric trucks by 2030. Currently, they make up less than 1% of sales, with the rollout hit by production and delivery problems at Northvolt.
Swedish truckmaker Scania is in talks with battery cell makers about potentially supplying its future electric fleet but remains committed to its current partner Northvolt, Scania CEO Christian Levin told Reuters.
Scania, which is part of the Volkswagen-owned Traton Group, wants half of its vehicle sales to come from electric trucks by 2030. However, currently, they make up less than 1% of sales, with the rollout hit by production and delivery problems at struggling Northvolt.
“We talk to everyone in order to make sure that we are not going to end up in problems if they (Northvolt) have problems," Christian Levin, who is the CEO of Traton and Scania, told Reuters.
But Levin indicated that his company was committed to supporting Northvolt.
Scania has been wanting to engage other suppliers given its planned EV ramp up, he added.
Northvolt and Volkswagen entered a USD 14 billion supply agreement in 2021 spanning the next 10 years.
The battery manufacturer was not just an important project for Sweden’s “green industrial revolution” but touted as Europe’s answer to imported Chinese batteries and a means of reducing the dependence on oil.
Since it was founded in 2016, Northvolt rose rapidly, getting billions of dollars in investment and orders from top automakers like Volkswagen and Volvo.
But the mood soured this year as Europe’s EV market struggled. In June, BMW canceled a USD 2.2 billion contract with Northvolt. Later, the beleaguered battery maker announced plans to cut 1,600 jobs in Sweden as part of a major cost-cutting drive.
In October, a Swedish government agency said that Northvolt’s decision to scrap a major factory expansion in Sweden puts on hold crucial funding for the company that was agreed earlier this year.
