Swedish manufacturer Northvolt is close to a deal to build an electric-vehicle battery plant near Montreal, a project that is expected to be worth about $5.3 billion.
The Canadian and Quebec governments are preparing to give financial aid to Northvolt, which may be worth billions, after a similar agreement with Volkswagen to build an EV battery plant in Ontario.
According to a Bloomberg report, announcement is likely to be made in the coming weeks, although negotiators are still working on final details.
A deal with Northvolt would underscore Prime Minister Justin Trudeau’s ambitions for Canada to capture a sizeable piece of the North American electric-vehicle supply chain, at a huge cost to the public purse.
The Northvolt project – to be built in Saint-Basile-le-Grand, about 25km east of Montreal – is to include a cathode factory, a battery cell assembly line and a recycling facility, sources said.
If it is built to plan, it would be one of the largest private-sector investments ever in Quebec, Canada’s second most-populous province.
By choosing Quebec, Northvolt, which says its goal is to build the “world’s greenest battery", will benefit from the province’s low-cost and clean hydroelectric power.
-
Northvolt, which counts BMW and Volkswagen among its investors, last year delivered its first battery cells from its gigafactory in Sweden. Photo: Northvolt AB -
The factory is racing to electrify Europe's vehicle manufacturing sector as governments restrict the sale of petrol and diesel vehicles to meet decarbonisation targets. Photo: Northvolt AB -
The electric battery plant aims to have an annual production capacity of 60 gigawatt hours, which will be enough to power hundreds of thousands of vehicles. Photo: Northvolt AB -
The power plant is located in Skelleftea, a small city in north-eastern Sweden, which is surrounded by pine forests and lakes. Daniel Bardsley / The National -
Northvolt is part of the Swedish green investment company Vargas. Photo: Northvolt AB -
The gigafactory has attracted workers from around the globe, with more than 80 nationalities working on site. Daniel Bardsley / The National -
The company has about 1,800 employees, but when the plant is completed in two years' time, that figure is set to rise to about 4,000. Daniel Bardsley / The National -
Helena Renstrom said that the company can guarantee 100 per cent renewable energy in Skelleftea. Daniel Bardsley / The National -
The company says it has been able to cut emissions by 70 per cent compared to a Chinese-produced electric cary battery. Daniel Bardsley / The National -
Sanna Backstrom, communications manager for Northvolt, said the company has grown from nothing to a functioning production facility in two years. Bardsley / The National -
Carl-Erik Lagercrantz, chief executive of parent company Vargas, said Northvolt is a key part of the European transition to electric vehicles. AFP
“Northvolt is currently doing a site study in North America, analysing multiple possible locations in the US and Canada,” Northvolt spokesman Anders Thor told Bloomberg News.
"This process is still ongoing and no final investment decision has been made.
Northvolt, based in Stockholm and founded by former Tesla executives in 2016, has a primary plant in Skelleftea, Sweden, and two other factories in the works in Europe.
The company has partnerships with Volvo Group, BMW and Volkswagen, and says it has more than $55 billion in contracts.
