The 60 GWh gigafactory, called ‘Northvolt Drei’, is being built in the town of Heide in Schleswig-Holstein.

The money will serve two purposes: it will expand the production of cathode materials and battery cells in the gigafactory, and it will expand the capabilities of the adjacent recycling plant.

The first construction phase of 'Northvolt Six' will begin at the end of this year, with a target of a 30-GWh annual capacity when completed in 2026.

The battery assembly launch will allow Scania to commence serial production of heavy-duty electric vehicles at Södertälje.

Following validation tests, Scania and Northvolt confirmed that the cells have the capacity to propel trucks up to 1.5 million kilometres over their lifetime.