Scania and Northvolt partner for heavy vehicle electrification

Friday, January 26, 2018

Scania and Northvolt have jointly agreed to develop and commercialise battery cell technology for heavy commercial vehicles. Scania has announced that it is investing EUR 10 million in the partnership to enhance further development and support the establishment of Northvolt’s demonstration line and research facility.

Vehicle electrification is rapidly advancing and offers a 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 needed for commercially viable electrification. Different transport tasks will require different electric powertrains, and 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,” says Henrik Henriksson, Scania’s president and CEO.

The two companies will establish an expert team and work together at Northvolt’s research facility 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,” says 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 so is well suited for large-scale sustainable battery production. Northvolt is building the next generation battery factory in the Swedish city of Skellefteå with the objective of producing high-quality green batteries, with a minimal carbon footprint and the aim of recycling.

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