Daimler Trucks in up to $500M supply agreement with Northstar Battery

[kscarbel2]

Green Car Congress  /  September 13, 2016

Daimler Trucks North America (DTNA) has entered into a 7-year agreement with Stockholm, Sweden-based energy storage manufacturer NorthStar as the supplier of Ultra High Performance Pure Lead AGM batteries as part of the improvements being made to the next-generation Cascadia truck.

NorthStar is also available as an extended life option on the majority of DTNA platforms creating a strategic partnership valued at up to $500 million.

The agreement with Daimler makes NorthStar batteries a standard on all ParkSmart-optioned (Bergstrom factory-installed no-idle system) trucks as well as a standard option on most other Freightliner, Western Star, Freightliner Chassis and Thomas Bus factory orders.

NorthStar is now also available from DTNA’s extensive network of dealers throughout North America.

DTNA is the first to market in offering its customers an Ultra High Performance Pure Lead AGM power solution as a standard offering for ParkSmart models, potentially reducing down time and operating costs.

DTNA claims that customers trading in trucks every four years may never have to replace a battery during the ownership cycle of the truck.

NorthStar received worldwide approval to supply batteries to Daimler Original Equipment platforms.

 

[kscarbel2]

Major contract for Swedish-owned Northstar

Goteborgs-Posten  /  September 13, 2016

Battery manufacturer Northstar, owned by the Swedish private equity company Altor, has signed a seven-year contract with truck manufacturer Daimler which is estimated to be worth the equivalent of 4.2 billion kronor.

Northstar has so far mainly been supplying batteries for mobile operators' base stations for back-up in case of power failure. More recently, the company's batteries have been tested in buses in American public transportation.

“That is why Daimler was willing to start talking to us. Over the last two and a half years, our batteries have undergone rigorous testing which demonstrated that our products are much better than those of competitors,” says Northstar group President Hans Lidén.

“Our products have a higher price tag than the competitors. But if you look at the entire life-cycle costs, it becomes much lower for truck owners,” he adds.

Fridges and microwaves

When drivers of heavy trucks stop for rest periods, they need power for everything from refrigerators to air conditioning and microwave ovens. According to Lidén, a traditional battery can only power everything for about an hour, while Northstar’s batteries can last an entire night. This means drivers do not need to run their engines at idle in the absence of external power. The batteries also charge faster and have longer life than traditional lead-acid batteries.

“It provides great environmental benefits,” says His Lidén.

“Primarily, we have worked with Daimler to jump-start our entrance into the truck business. When you are approved supplier to one of the world's largest truck manufacturer, it is much easier to knock on the door of the other," says Hans Lidén.

Northstar and Altor

Northstar is wholly owned by the Swedish private equity firm Altor Equity Partners AB. The battery manufacturer has about 500 employees, including 50 in Sweden.

Battery manufacture takes place in Springfield, Missouri, United States.

Altor's business focuses on medium-sized companies in the Nordic countries and a total of nearly 30 companies with Altor has approximately 60,000 employees.

[kscarbel2]