Quebec Confirms Northvolt EV Battery Plant Is Dead, Loses $270M

The Quebec government has officially ended its financial support for Northvolt’s planned electric vehicle battery plant in Saint-Basile-le-Grand and McMasterville. The project, once billed as a cornerstone of the province’s battery strategy, will not move forward.

In a statement on Tuesday, Minister Christine Fréchette said (translated), “Today, we are ending funding for Northvolt in Québec. The company did not present a plan that satisfied Québec’s interests, so we are asserting our rights to recover as much of our investment as possible. This venture has proven unsuccessful, and we are obviously disappointed.”

“However, the outcome of this project does not in any way mark the end of the battery sector here. On the contrary, our sector is very much alive with several companies active in this ecosystem. We remain convinced that it has a bright future, especially in Bécancour, where nearly 3,000 people are working on the construction of plants,” said Fréchette.

The government had committed $510 million to the project—a $240 million guaranteed loan for land purchases and $270 million invested in Northvolt’s Swedish parent company. The $270 million investment is considered lost, while the loan is secured by repayment guarantees.

Northvolt filed for bankruptcy in November 2024 and March 2025 due to financial distress, scaling down operations and selling assets.

Officials said the province will also review how to repurpose 352 megawatts of reserved energy for other economic development projects on the site or elsewhere.

Back in fall 2023, Ottawa promoted its Northvolt deal as a big step toward Quebec’s future. Today, that plan has officially collapsed.

Back in March, Quebec already said the value of its investment was going to be a write down.