Scania announces huge investment in electrification

Ten million euros to develop truck and bus batteries

Scania has announced that it is investing 10 million euros in partnership with Northvolt to develop battery cell technology for heavy commercial vehicles.

Scania says that for heavy trucks and buses, continued development is needed in the area of cost efficient and sustainable batteries to get a market breakthrough in commercially viable electrification. Different transport assignments will require different electric powertrains. For optimal effect, battery and cell technologies must therefore 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 in Sweden to develop and commercialise production of battery cells 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 of producing high-quality green batteries, with a minimal carbon footprint and high options for recycling.

Scania says the partnership is one of several initiatives in the company’s plans to drive the shift toward a sustainable transport system.

Scania announces huge investment in electrification

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