Quebec’s government has confirmed it will cease further funding for the planned Northvolt battery plant near Montreal after the Swedish parent company entered bankruptcy. In 2023, the province committed C$510 million to support Northvolt Batteries North America, including a C$240 million loan and a C$270 million equity investment, for a proposed C$7 billion facility in Saint-Basile-le-Grand and McMasterville.
Economy and Innovation Minister Christine Fréchette said the company failed to present a satisfactory plan to protect Quebec’s interests, prompting the government to assert its rights and seek recovery of as much of its investment as possible. Northvolt AB declared bankruptcy in Sweden in March, and Quebec officially wrote off its C$270 million equity stake.
The province has filed a court application to recover more than C$260 million under the loan agreement that financed land acquisitions. Authorities are also seeking permission to withdraw nearly C$200 million from frozen Northvolt accounts and to proceed with the sale or repossession of the project site. The 352 megawatts of power initially reserved for the plant will now be allocated elsewhere.
Northvolt North America issued a statement emphasizing that its North American operations remain solvent and that it continues to pursue a buyer while managing its finances. The company said it would support employees and partners through the transition.
Quebec’s public pension fund manager, the Caisse de dépôt et placement du Québec, also invested C$200 million in Northvolt and incurred losses when the Swedish firm filed for bankruptcy.
The proposed plant had been a centerpiece of the provincial government’s “battery value chain” strategy, which aimed to boost research, mineral development and manufacturing in Quebec. Fréchette noted that despite this setback, several other battery firms are progressing in the province.
Opposition parties criticized the government’s handling of the file, arguing that reliance on a single partner represented a planning and execution failure, and questioned whether the full loan recovery would be realized.
Source: CBC News
