Scania, a member of the Volkswagen Group, and Northvolt, a 2016 startup that is building what it calls a European gigafactory for Li-ion batteries (with a planned 32 GWh annual capacity), have agreed to work together to develop and commercialize battery cell technology for heavy commercial vehicles.

Scania will invest €10 million ($12.5 million) in the partnership to support the establishment of Northvolt’s demonstration line and research facility.

Production of battery cells is energy-intensive, and Sweden offers a solid supply of cost-effective green energy, making it a great place for large-scale sustainable battery production. Northvolt is building the new battery factory in the city of Skellefteå in the north of Sweden, with the objective of producing batteries with a minimal carbon footprint and high potential for recycling.

“Different transport applications will require different electric powertrains,” says Henrik Henriksson, Scania’s CEO. “For optimal effect, battery and cell technologies must therefore be developed to support varying needs. Current battery cell technology must be developed to fulfil the business requirements of heavy bus and truck customers.”

“With Scania’s product and business expertise, combined with our cutting-edge manufacturing process, we are convinced that we can produce cost-efficient and green battery cells of the highest quality for the heavy commercial vehicle market,” says Peter Carlsson, co-founder and CEO of Northvolt.

Source: Northvolt