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Quebec Cancels $7 Billion Northvolt Battery Project

MONTREAL – The Quebec⁢ government is pulling the plug ⁣on a $7-billion electric-vehicle battery⁣ project near Montreal and trying to recoup some ⁢of its investment. Economy Minister Christine Fréchette announced ⁤Tuesday that the government is ⁢cutting its losses on the planned Northvolt battery factory after spending⁣ $510 million on the troubled venture, once ⁣touted as the largest private investment in the province’s history.

The Quebec government pledged up to $2.9 billion in financing for the project, while Ottawa committed up to $4.4 billion. but construction ⁣of the plant never got underway.

“As the company did not⁢ present a satisfactory plan with respect to Quebec’s interests, we are asserting our rights to recover the⁤ maximum amount of our investment,” Fréchette said in a statement. “This adventure has proven unsuccessful, and we are obviously disappointed.”

Plans for the battery plant have been up in the air since Northvolt’s Swedish parent company filed for bankruptcy in March. Last month, American battery startup Lyten announced it was acquiring Northvolt’s assets in sweden and Germany and hoped to buy the Northvolt ⁤Six project in Quebec’s Montérégie region.

Catherine Pelletier, a spokesperson for fréchette, said government⁣ representatives met with Lyten in July and August, but the‍ company wanted more government ⁤funding that Quebec was unwilling to offer. She said Lyten ‍made “disproportionate demands,” though she would not provide figures.

Pelletier said the ⁢government was concerned about risking more taxpayer money on another relatively new company.

in a statement, Northvolt Batteries North America said it found the decision ⁣”regrettable,” and said it had been in contact with potential buyers until this week. “It is important⁤ to ⁢remember that (the North American subsidiary) is not ⁤bankrupt and still‍ had⁣ solid ‍financial resources ⁢to relaunch the project,” the company said. “It was a great project, and our team still believed in it.”

Keith Norman, Lyten’s chief marketing officer, said the company accepts Quebec’s‍ decision. “We have been clear with our desire to acquire the site to build a North American gigafactory, and if given the opportunity, we would be happy to work with the Quebec government to develop the site,”⁢ he said in a statement.

The Northvolt project was unveiled to great fanfare in September 2023, at an ⁤event attended by than-prime minister Justin⁣ Trudeau, who called it a “generational opportunity.”

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