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Scania in talks with EV battery suppliers as partner Northvolt stutters, CEO says

Swedish truckmaker Scania is in talks with battery cell makers about potentially providing its future electric fleet however remains committed to its current partner, beleaguered Swedish firm Northvolt, its CEO informed Reuters in an interview.

Scania, which belongs to the Volkswagen-owned Traton Group, wants half of its car sales to come from electric trucks by 2030.

However, they currently comprise less than 1% of sales, and their rollout has actually been obstructed by production and shipment problems at cash-strapped Northvolt.

We speak to everybody in order to ensure that we are not going to wind up in issues if they (Northvolt) have problems, Christian Levin, CEO of both Traton and Scania, told Reuters in an interview, declining to call the other cell makers.

Levin restated the firm's desire to stick with Northvolt, which he stated were producing the only green cell in the market. We support them in any way we can, he stated.

The company had always prepared to engage other providers provided its awaited EV increase over coming years, he added.

Volkswagen is Northvolt's greatest stakeholder, owning 21% of the company, according to its yearly report, however today the battery marker verified that Volkswagen's financial investment chief was leaving its board. Volkswagen declined to talk about the move.

Northvolt and Volkswagen got in a $14 billion supply contract in 2021 covering the next 10 years.

Levin, who was visiting Japan with his executive board as part of an Asia trip that also included China, where the company is building a major brand-new production center, said the more comprehensive obstacle facing its green plans is a lack of political assistance.

U.S. President-elect Donald Trump, a climate modification sceptic, is preparing to kill electrical automobile tax credits introduced by his predecessor, sources informed Reuters. He might likewise again withdraw the world's biggest economy and second-largest emitter of greenhouse gases from the Paris climate contract.

However Levin said Trump was only part of the issue.

I'm afraid on a global level that I see that this improvement is going too slowly and that policymakers are not supportive enough, he said.

I'm naturally also worried for the company who is investing a lot in these technologies, because we really wager the business on this ... The world is out of sync. That concerns me. So it's not just Trump.

(source: Reuters)