Northvolt, a battery manufacturer, confirms Quebec plant expansion despite conducting review of expansion efforts.
Swedish electric vehicle battery maker Northvolt is currently undergoing a strategic review of its recent expansion efforts. However, the construction of its plant in Québec will proceed as planned.
Last September, Ottawa and Quebec announced significant subsidies for the construction of a mega factory on Montreal’s south shore by the company. The future of the plant was uncertain following a strategic review announced on July 2, with the company’s CEO suggesting that its Canadian plans could be impacted.
“A strategic review is being conducted at Northvolt, expected to be finalized in the autumn, assessing timelines and capital allocation to ensure the most effective expansion of capacity,” stated Northvolt in a July 2 announcement reported by Reuters. The company’s CEO, Peter Carlsson, also mentioned that planned plants in Germany and Montreal might be reevaluated as a result.
A spokesperson for Northvolt North America reassured that the Québec project is not being halted.
“Our commitment to Quebec remains strong, and we plan to contribute significantly to the energy transition by producing environmentally-friendly batteries. Currently, we are continuing with the construction of our Northvolt Six technology campus as scheduled,” stated Communications Director Laurent Therrien.
Mr. Therrien acknowledged the company’s challenges in meeting customer demands and mentioned that the strategic review would determine project completion deadlines.
Several Canadian governments have made substantial investments to enhance the domestic electric vehicle supply chain.
Industry Minister François-Philippe Champagne has been leading the electric vehicle initiatives, including agreements with other companies like Volkswagen, Stellantis-LG Energy Solution, and Honda.
Minister Champagne’s office noted awareness of Northvolt’s strategic review and its potential impact on Canada but did not provide further details.
Efforts are ongoing to attract more investments to Canada, with over $46 billion already secured for the electric vehicle supply chain.
The Quebec government did not respond to queries at the time of publication.
Northvolt’s presence in Québec has encountered challenges from saboteurs, including damage to machinery at the construction site.
Reuters and The Canadian Press contributed to this report.
Editor’s note: This article has been updated to include comments from Northvolt North America.
