Northvolt’s client secret is Navistar International

The transport giant Navistar International, which gravitates into the Volkswagen ecosystem, is the North American customer whose identity was kept secret by Northvolt, has been able to confirm The Press. It is to meet the needs of this truck and bus manufacturer that the Swedish manufacturer established itself in Quebec.

“Out of respect for the business relationship that our client maintains with its current supplier, the latter has asked us not to disclose its identity,” said Northvolt North America spokesperson Emmanuelle Rouillard in a statement sent by email.

Navistar – renamed International this fall – did not respond to interview requests from The Press.

From several sources familiar with the matter, but who are not authorized to speak publicly, The Press was able to confirm that the customer in question is the American giant behind the International truck brand. The latter is still on board, despite the financial setbacks of Northvolt’s parent company, sheltered from its creditors since November 21.

Co-founder of Northvolt and director of its North American branch, Paolo Cerruti had already revealed, last April, that half of the annual production of the Quebec complex – a project valued at 7 billion – was intended for a customer. However, he refused to go any further.

However, it was impossible to get an idea of ​​when the American manufacturer should begin receiving battery cells manufactured by Northvolt in the southern suburbs of Montreal. For now, International sells medium-duty electric trucks, but not yet a tractor unit.

On the Northvolt side, we are still waiting to know what will happen to its planned megaproject in Montérégie. Regardless of what changes might be made, the commissioning of the complex, initially planned for 2027, is expected to be at least a year late.

Antenna the Volkswagen

International is owned by the Traton Group, a subsidiary of Volkswagen, also behind the European brand Scania. During the fall, this European truck manufacturer made several public exits to support the young Swedish company despite the liquidity crisis that pushed it towards insolvency.

“In the future, all our trucks sold will be equipped with cells manufactured by Northvolt,” explained Scania CEO Christian Levin, quoted by the Bloomberg agency, on October 28.

Additionally, the Swedish truck specialist agreed to lend Northvolt US$100 million last November after seeing the company enter Chapter 11 of US bankruptcy law, a process to restructure its debt and refinance itself.

It is therefore not surprising to see International following in the footsteps of its owner by wanting to focus on the Swedish manufacturer’s batteries in the North American market.

Without mentioning the name of his first client on this side of the Atlantic, Mr. Cerruti has already stressed that reducing greenhouse gases goes beyond the electrification of automobiles.

“This doesn’t just mean producing batteries for cars,” he wrote in an open letter. We must decarbonize heavy transport, we must increase storage capacities. This is our ambition with Northvolt Six [l’usine québécoise]. »

According to the International Energy Agency, trucks used to transport goods alone represent almost 30% of the sector’s emissions.

“It is an excellent choice to use NMC technology in heavy vehicles, vans and buses,” says Karim Zaghib, full professor at Concordia University specializing in the battery niche. This technology has the greatest energy density. »

Nickel-manganese-cobalt (NMC) batteries, like those manufactured by Northvolt, have a higher energy density, meaning they can store more energy for a battery of the same size. However, they are more expensive. These batteries cost approximately 20% more to produce than LFP (lithium-iron-phosphate) batteries.

Break coming

On the gigantic land which straddles Saint-Basile-le-Grand and McMasterville and which will accommodate the Northvolt mega-factory, the machinery is preparing to take a winter break. Construction activities are expected to resume in the spring, with concrete pouring expected.

The Quebec cell phone branch is not part of the current restructuring processes. The North American subsidiary has 330 million Canadian dollars, enough to continue operations for 18 months. The project’s Quebec suppliers will therefore continue to be paid. Ultimately, however, Northvolt will have to convince investors to finance its Quebec ambitions.