Feds and Quebec Drop $2.71 Billion into Northvolt EV Battery Plant
Prime Minister Justin Trudeau and Quebec Premier François Legault announced a landmark investment in a new electric vehicle battery manufacturing facility by Sweden’s Northvolt Batteries North America.
The plant, to be located in Saint-Basile-le-Grand and McMasterville, Quebec, will be powered by clean electricity and aims to produce some of the world’s greenest batteries.
“Once again, with Northvolt’s new facility, the world is choosing Quebec and Quebec workers,” said Trudeau.
“I am very proud to announce the largest private investment in Quebec’s recent history: a structuring project by Northvolt with a total value of $7 billion,” added Legault.
The facility will occupy an area equivalent to 318 football fields and will have an annual battery cell manufacturing capacity of up to 60 GWh. The first phase of the project, valued at $7 billion, will create up to 3,000 jobs in the region. This phase will also include adjacent facilities for cathode active material production and battery recycling, making it the only fully integrated facility of this type in Canada.
Canada and Quebec have committed to providing Northvolt with production support matching the U.S. Inflation Reduction Act’s Advanced Manufacturing Production Credit, equalling up to US$35 per kWh.
Government production incentives will be up to C$4.6 billion, with one-third to be paid by the Quebec government. Canada will provide up to C$1.34 billion in capital commitment toward the project, and Quebec will contribute C$1.37 billion.
“Today’s announcement is more than just a battery cell manufacturing project; it is the culmination of our desire to attract the world’s biggest players,” said François-Philippe Champagne, Minister of Innovation, Science and Industry.
The plant is expected to contribute up to $1.6 billion to GDP annually when at full capacity and will support tens of thousands of jobs across the country. The project is seen as a significant step in Canada and Quebec’s efforts to become leaders in the electric vehicle manufacturing sector.