Valmet to build electric buses for Jeti Industries as contract manufacturer

Valmet Automotive has stated that this “would mark the first time that electric buses for city and regional transport are produced in the Nordic countries in a modern automotive plant based on a contract manufacturing model.” However, this statement is made in the subjunctive mood, as the cooperation between the two Finnish companies is currently only a preliminary agreement. The final contract is still under negotiation, according to Valmet Automotive.Jeti Industries is a Finland-based developer founded in 2012. According to its own statements, it “works in close collaboration with Nordic and European technology partners and also offers design and expert services to other companies in the industry.” The centrepiece and flagship of the company, however, is the N1e series—a fully Finnish-developed electric bus family designed to excel in the demanding Nordic conditions (‘Ultra Robust Nordic’). Jeti positions this range as a versatile battery-electric bus for urban and regional transport. The Finns first unveiled a demonstrator in 2022.The powertrain of the electric buses is described by the company as an in-house development, though Jeti has not disclosed specific technical details. The only confirmed details so far are a range of up to 550 kilometres, vehicle lengths of between 10 and 15 metres, and overnight charging as the chosen charging concept. Additionally, the partners highlight the “advanced Finnish software expertise to optimize vehicle usability, reliability, and life cycle costs.”Series production is now set to take place at Valmet Automotive’s plant in Uusikaupunki. The contract manufacturer is primarily known for its passenger car production for third parties but expanded its focus in September 2025 to include bus manufacturing. Jeti expects this partnership to enable efficient scaling of production “for rapidly growing markets.”“This preliminary agreement is another concrete step in advancing our strategy of expanding into new industries,” comments Pasi Rannus, CEO of Valmet Automotive. “Given our history in car manufacturing, producing zero-emission electric buses for next-generation mobility is a logical step for us and a continuation of our long-standing expertise in manufacturing electric vehicles.” Rannus adds that Jeti Industries has developed an outstanding product innovation with an existing international market. “We are excited to participate in the development of novel mobility solutions and to enable the serial production of a Finnish high-tech product.”Jeti emphasises the modular architecture of the buses, which allows for flexible assembly of various model versions for different applications, such as varying vehicle lengths. Additionally, numerous Finnish suppliers are expected to be involved in the production, strengthening the domestic value chain of the automotive industry. “The electrification of European bus transport is progressing very rapidly, and there is a clear need in the market for electric buses manufactured in Europe,” says Niko Andersson, Founder and CEO of Jeti Industries. “We have been developing our modular product concept with a long-term perspective, and our innovative technical solutions make our products highly price-competitive in this growing market.”Regarding the choice of contract manufacturer, Andersson states: “Valmet Automotive’s long-term experience in serial manufacturing of a wide range of complex vehicles enables us to scale production quickly and reliably. This collaboration is also supported by our shared commitment to sustainability and environmental values.”Valmet is negotiating the manufacturing contract with Jeti during a period of significant change: In summer 2024, the company decided to restructure its three business units to operate more independently. As a result, Ioncor was established as an independent subsidiary for the battery systems business, alongside the parent company’s traditional contract manufacturing operations and RKS (Roof & Kinematic Systems), which focuses on roof and kinematic systems and operates in Poland and Germany.In 2025, the partial nationalisation of Ioncor and Valmet Automotive was announced. The Finnish government has identified the company’s expertise in battery systems and production as a strategic asset, particularly given the tense geopolitical situation and Finland’s 1,300-kilometre direct border with Russia. Through several transactions, the state will gain control of both entities: Valmet will soon be 79% state-owned, while Ioncor will be 70% owned by the state-owned Finnish Minerals Group. The remaining shares are held by Varma (16%) and Pontos (14%). Additionally, the state has committed to investing approximately 20 million euros of new capital in Ioncor.valmet-automotive.com, jeti.fi