Quebec Ends $510M Funding Northvolt Battery Plant

The Quebec government announced it is ending funding for Northvolt's planned $7-billion electric vehicle battery plant in the Montérégie region, after the Swedish company declared bankruptcy. Quebec invested a total of $510 million in the project, including a $240 million guaranteed loan for land purchase and a $270 million direct investment, with the latter amount considered lost. Economy Minister Christine Fréchette expressed disappointment but emphasized that this setback does not signal the end of the battery industry in Quebec, which remains active with other companies. The government plans to recover funds from Northvolt's North American assets, estimated at $200 million, and reclaim the land designated for the plant. Additionally, Quebec will reassess the use of the 352 megawatts of energy reserved for the project. The venture, initially hailed as a major private investment by Premier François Legault and Prime Minister Justin Trudeau in 2023, has now been terminated due to Northvolt's failure to present a satisfactory plan.