A vehicle includes a traction battery, an electric machine powered by the traction battery and configured to power wheels of the vehicle, and a thermal-management system. The thermal-management system includes a battery loop, a cabin heating loop, and a valve configured to fluidly connect the battery loop and the cabin heating loop when in a first position and configured to fluidly isolate the battery loop and the cabin heating loop when in a second position. A controller is programmed to, responsive to (i) battery heating being requested, (ii) a temperature of the battery being greater than a lower threshold, and (iii) cabin heating being requested, actuate the valve to the first position to heat a cabin and the battery.