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8mo ago

Quebec Pulls Plug on Northvolt Megafactory, Writes Off $270 Million

Officials opted to recover the secured land loan instead of backing a Lyten-led rescue.

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
Image
An aerial view of the land that was being developed by Northvolt in Saint-Basile-le-Grand, Que., southeast of Montreal.
Signage is seen at the entrance to the Northvolt plant, dubbed Northvolt Six, in St-Basile-le-Grande, Que., on Thursday, March 27, 2025. THE CANADIAN PRESS/Christinne Muschi

Overview

  • Economy Minister Christine Fréchette said the province ended funding for the Northvolt Six project after the company failed to present a plan that met Quebec’s interests.
  • Quebec confirms a $270 million loss on its investment in Northvolt’s parent and is pursuing recovery of a $240 million loan secured by the project land.
  • Government filings were made in court to initiate a process for sale or repossession of the site, with officials saying they are well positioned to recoup the loan.
  • Talks with U.S. startup Lyten collapsed after the company sought additional public money and more time, requests the province declined.
  • The 352 megawatts of power reserved for the plant will be reallocated, construction never began, and Ottawa had not disbursed its pledged support; major Canadian pension funds have taken writedowns on their Northvolt stakes.