Northvolt

Quebec’s government has pulled the plug on the $7-billion Northvolt battery plant project in Saint-Basile-le-Grand and McMasterville. Economy Minister Christine Fréchette announced the province will invest no further funds after the company failed to present a plan aligned with Quebec’s interests.

Quebec invested $510 million, including a $240-million loan guarantee and $270 million in Northvolt’s Swedish parent, which declared bankruptcy in March. The Caisse de dépôt et placement du Québec also lost $200 million. Once expected to create 3,000 jobs and make Quebec a battery powerhouse, the project has officially collapsed despite Northvolt’s pledge to find new buyers.

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One year after announcing its $7-billion battery factory near Montreal, Swedish-based Northvolt faces financial difficulties, raising concerns about the future of its Quebec project. Amid a cash crunch, the company cut 20% of its global workforce and hired restructuring advisors. Northvolt has assured that work continues on its Quebec facilities, but delays are anticipated.

The factory, funded by $7.3 billion from Canadian and Quebec governments, is key to Canada’s EV sector and expected to create 3,000 jobs. Some opposition leaders are calling for funding to be halted. The fate of Northvolt and its impact on Canada’s economy remain uncertain.

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