Northvolt Commits to $7B Quebec Battery Plant Despite Undergoing 'Strategic Review'

03 Jul, 2024

Northvolt Commits to $7B Quebec Battery Plant Despite Undergoing 'Strategic Review'

Northvolt, a Swedish EV battery manufacturer, is continuing the construction of its $7-billion plant on Montreal's South Shore despite undergoing a "strategic review" of its operations. This review aligns with a global decrease in electric vehicle demand, leading companies like Ford and General Motors to reduce production. Northvolt's spokesperson reiterated the company's commitment to Quebec's energy transition by producing environmentally friendly batteries.

Northvolt is managing large projects in both Canada and Germany, while also facing delays with its mega-factory in Sweden. Pascal Paradis, MNA for Jean-Talon, called on the provincial government to reassess its strategy to ensure the project's social acceptance, including involving Quebec's environmental watchdog, BAPE.

Slated for completion in 2026, the Northvolt plant has been controversial. Quebec's government pledged $2.9 billion, and Ottawa committed up to $1.34 billion along with additional incentives. The facility is expected to produce 56,000 tonnes of batteries annually.

Environmental groups have raised concerns, with the Centre québécois du droit de l'environnement filing an injunction to halt construction due to potential wetland impacts. The injunction was denied after Northvolt committed to environmental restoration efforts. Quebec's Environment Minister clarified that changes to review thresholds were made to expedite the project, not to bypass regulations. Both federal and provincial officials remain supportive, highlighting Northvolt's importance in advancing Canada's EV industry.