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Scania and Northvolt announce partnership for heavy vehicle electrification

Scania, the Sweden-headed engine, bus and truck manufacturer and Northvolt AB, a Swedish battery technology developer have agreed to develop and commercialise battery cell technology for heavy commercial vehicles. Scania will invest EUR 10 million in the partnership to enhance further development and support the establishment of Northvolt’s demonstration line and research facility.

(Left to right) Carl-Erik Lagercrantz, Chairman, Northvolt; Peter Carlsson, CEO, Northvolt; Henrik Henriksson, President and CEO, Scania; Claes Erixon, Executive Vice President, Head of Research and Development, Scania (photo courtesy Scania).

Vehicle electrification is rapidly advancing and, according to Scania, offers a favourable path towards more sustainable transport solutions. For heavy trucks and buses, continued development of both charging infrastructure as well as more robust, cost-efficient and sustainable battery cells is crucially needed for a widespread market breakthrough in commercially viable electrification.

Different transport assignments will require different electric powertrains. For optimal effect, battery and cell technologies need to be developed to support varying needs.

We aim to make it easy for customers to select sustainable transport solutions. Electrification will play a key part in the shift to a fossil free transport system. However, the current battery cell technology must be developed to fulfil the business requirements of heavy bus and truck customers. With Northvolt as a partner, we believe that we can make major strides forward, said Henrik Henriksson, Scania’s President and CEO.

The two companies will establish an expert team and work together at Northvolt’s research facility, Northvolt Labs, in Västerås, Sweden, to develop and commercialise production of battery cells optimised to power commercial vehicles. The companies have also entered into an off-take purchase agreement for battery cells.

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, said Peter Carlsson, Co-Founder and CEO of Northvolt.

Production of battery cells is energy intensive and Sweden offers a solid supply of cost-effective green energy. The country is therefore well suited for large-scale sustainable battery production. Northvolt is building the next generation battery factory in the city of Skellefteå in the north of Sweden with the objective to produce high-quality green batteries, with a minimal carbon footprint and the highest ambitions for recycling.

This partnership is one of several strategic initiatives in Scania’s ambition to drive the shift toward a sustainable transport system.

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