Northvolt’s proposed $7 billion electric vehicle battery plant on Montreal’s South Shore could be delayed by up to 18 months, according to recent statements from the Quebec government and the company. The Swedish manufacturer is conducting a strategic review that could result in a revised timeline for the project.
Originally scheduled to begin production in 2026, Northvolt said the results of the review are expected in early fall. The company stressed that engineering, design and site preparation work will continue during this period.
This development comes amid a broader slowdown in global demand growth for electric vehicles, with major automakers such as Ford and General Motors announcing scaled-back EV production plans.
Quebec Economy Minister Pierre Fitzgibbon commented on social media that the battery industry is experiencing a global slowdown, with experts predicting a 12 to 18 month period of market stabilization, which could impact Northvolt’s plans.
The 170-hectare plant, to be built between Saint-Basile-le-Grand and McMasterville, is expected to produce 56,000 tons of batteries per year when completed. The project has received significant financial support, with Quebec pledging $2.9 billion and the federal government promising up to $1.34 billion for construction and another $3 billion in other incentives.
The potential delay has prompted reaction from opposition parties, who have raised questions about the government’s approach to the project, including its exemption from Quebec’s standard environmental review process.
Industry experts note that a significant delay could affect Quebec’s competitiveness in the emerging EV battery sector, potentially impacting future contracts and investments in the region.
Source: CBC News
