Northvolt is SEK 100M and a strategic investor closer to launch its largest electric battery factory in Sweden.

Northvolt, a Swedish-based company aiming to develop the largest electric batteries in Europe, announced entering into an agreement with local truck producer Scania in order to jointly develop and commercialise battery cell technology for heavy commercial vehicles.

As part of the deal, Scania is investing EUR 10M ($12.5M) 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.

Northvolt, founded by CEO Peter Carlsson, is building a next generation battery factory with the aim to produce the world’s greenest batteries to enable and accelerate the transition to renewable energy.

The company has raised almost $40M from investors including strategic ones such as big corporations ABB and Vesta.