Scania and Swedish battery manufacturer Northvolt have jointly agreed to develop and commercialise battery cell technology for heavy commercial vehicles.
Scania is investing $12.35m (EUR10m) in the partnership to enhance further development and support the establishment of Northvolt’s demonstration line and research facility.
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.
Henrik Henriksson, president and CEO, Scania, said: “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.”
Peter Carlsson, co-founder and CEO, Northvolt, said: “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.”
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 batteries with a minimal carbon footprint and high ambitions for recycling.
Production of battery cells is energy intensive and Sweden offers a solid supply of cost-effective green energy.