Volkswagen's Scania to invest in $5 billion Swedish battery plant

Swedish truckmaker Scania, a subsidiary of Volkswagen, has pledged to invest 10 million euros ($12.5 million) in a 4 billion euro ($5 billion) battery cell plant in northern Sweden, according to Reuters.

Why it matters: The plant is being constructed by Northvolt, a lithium battery company founded by former Tesla executive Peter Carlsson. With a predicted total storage capacity of 32 gigawatt-hours a year by 2023, the project will become Europe's largest battery cell plant just as automakers are preparing for a spike in electric car production.