MONTREAL — It's unclear whether Northvolt North America's electric vehicle battery plant project in Quebec will proceed after its parent company filed for bankruptcy in Sweden on Wednesday.
The manufacturer's Canadian subsidiary says Northvolt AB underwent an "exhaustive effort ... to secure a viable financial and operational future" but was ultimately unsuccessful.
Northvolt North America says it remains solvent and intends to honour its obligations, including toward its employees.
Its battery plant project, dubbed Northvolt Six and slated for construction about 25 kilometres east of Montreal, amounts to a $7-billion undertaking that aims to churn out battery cells and cathode active material for electric vehicles.
Spokeswoman Emmanuelle Rouillard-Moreau would not confirm when asked if construction on the project will move ahead as part of Northvolt North America's commitment to honour obligations.
She says any decisions regarding the subsidiary "will be made by the court-appointed trustee of Northvolt AB, together with the group's lenders, at the appropriate time."
The Quebec government hopes a buyer can be found for the North American operations.
Economy and Energy Minister Christine Fréchette said in a social media post that the government wants the trustee "to start looking for a buyer who will invest to take over all activities in North America to relaunch the project.”
She said Quebec will get in touch with the trustee "rapidly."
“We are obviously disappointed by the situation. On the other hand, we must remember that several other projects in the battery sector are continuing in ... Quebec,” Fréchette said, particularly in Bécancour.
Quebec and Ottawa have pledged to invest $2.4 billion in the project.
The Legault government has poured $270 million in Swedish parent company Northvolt AB, and Fréchette confirmed this sum "has lost its value." The Caisse de dépôt et placement du Québec has also invested $200 million in the company.
Quebec granted Northvolt a further $240 million for the purchase of land in the Montérégie region. This sum is secured by collateral on the land and assets of Northvolt's North America subsidiary, Fréchette said.
This report by The Canadian Press was first published March 12, 2025.
The Canadian Press
