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11h ago

Quebec Cancels Northvolt Gigafactory, Writes Off $270 Million

Quebec aims to recover a $240 million land loan as it redirects the power once reserved for the failed project.

Signage is seen at the entrance to the Northvolt plant, dubbed Northvolt Six, in Saint-Basile-le-Grande, Que., on Thursday, March 27, 2025. Northvolt AB has filed for bankruptcy protection in the United States, but said the move will not jeopardize the manufacturer's planned electric vehicle battery plant in Quebec — though hundreds of millions of taxpayer dollars invested in the parent company could be lost. THE CANADIAN PRESS/Christinne Muschi
An aerial view of the land that was being developed by Northvolt in Saint-Basile-le-Grand, Que., southeast of Montreal.
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Overview

  • The government confirms the battery plant will not proceed after spending $510 million, including a $270 million investment it now considers lost and a $240 million loan it plans to recoup.
  • Officials filed court documents to initiate a sale or repossession of the land that secures the loan under creditor protection procedures.
  • Quebec will reallocate the 352 megawatts earmarked for the site, ending plans in Saint‑Basile‑le‑Grand and McMasterville.
  • Talks with U.S. startup Lyten ended after the company sought more funding and more time, terms the province refused.
  • Northvolt’s bankruptcy earlier this year eroded the project’s prospects, and several major Canadian pension funds have recorded writedowns on separate investments in the company.