Scania Invests Further in Northvolt Expansion
Scania’s partnership with Northvolt is about developing and commercialise battery cell technology for heavy vehicles. It started in 2018, and when Northvolt now completes another equity raise of 2.75 billion US dollars to deploy further battery cell capacity and enforce recycling, Scania is among the investors yet again. The demand for battery cell capacity increases when more customers make a transition to electrified products. Northvolt responds by expanding their Swedish factory from 40 GWh to 60 GWh. This is possible due to the 2.75 billion US dollar private placement made by both new shareholders and current owners.
A tremendous growth in the European value chain for battery manufacturing is coming, all the way from processing of raw materials to production of battery cells and systems and the build-up of recycling infrastructure. That is why Northvolt’s plan also includes enforcing recycling capabilities to ensure 50 percent of all raw material comes from recycled batteries by 2030.This is very important to Scania, considering the high the demand for batteries brought on by the electrification of heavy commercial transport. So far there is a limited supply, and an even more limited supply of sustainably produced batteries.