Quebec has officially terminated the Northvolt project, describing it as unsuccessful with no further investment planned. The province had supported the proposed $7-billion plant in Saint-Basile-le-Grand and McMasterville in the Montérégie region. Quebec’s investment of $510 million aimed to create 3,000 jobs and establish the province as a leading battery producer.
The project faced challenges, leading to the bankruptcy of Northvolt in Sweden, resulting in Quebec losing its $270-million investment. Despite Northvolt North America’s operations remaining solvent, Quebec decided to discontinue its involvement. The Caisse de dépôt et placement du Québec also lost its $200 million investment in Northvolt due to the bankruptcy.
Quebec intends to recover its $240-million loan by pursuing legal action to reclaim funds. The province seeks to retrieve over $260 million owed by Northvolt Batteries North America. Energy resources initially allocated to the project will be redirected elsewhere.
The Coalition Avenir Québec government’s vision for battery production, known as “filière batterie,” remains intact, with other battery companies already established in the province. Opposition leaders criticized the Northvolt project’s failure, emphasizing the mismanagement of funds and lack of foresight by the government. They expressed concerns about the recovery of the substantial investments made and questioned the efficacy of the project.