Northvolt to stay the course for $7B Quebec battery plant despite ‘strategic review’ | CBC News

Swedish EV battery producer Northvolt says development on its $7-billion plant on Montreal’s South Shore will proceed, whilst the firm undergoes a “strategic review” of its actions. 

The evaluation comes as international demand for electrical autos has slowed, with each Ford and General Motors saying they might scale back their manufacturing of electrical autos. 

In an announcement despatched Tuesday, a spokesperson for Northvolt says the evaluation will decide challenge timelines, however it’s too quickly to say what influence it might have on the plant being in-built Saint-Basile-le-Grand, Que.

“Our commitment and intentions are unchanged: to play a central role in Quebec’s energy transition by manufacturing the greenest batteries in the world,” the spokesperson stated.

The firm has two huge crops in the works — one in Canada and the different in Germany — and has fallen behind on the constructing schedule of its mega-factory in Sweden.

Pascal Paradis, MNA for Jean-Talon and the Parti Québécois critic for vitality, stated the provincial authorities ought to use the alternative to replicate “on its own strategy to promote social acceptability of the project,” together with by means of the province’s environmental watchdog, the Bureau d’audiences publiques sur l’environnement (BAPE). 

Set for completion in 2026, the Northvolt plant has been mired in controversy since its development was introduced. 

Quebec’s authorities pledged $2.9 billion in financing to safe the cope with Northvolt final yr, all whereas the Legault authorities was steeped in contract negotiations with academics and nurses. 

Meanwhile, Ottawa dedicated up to $1.34 billion to construct the plant and one other $3 billion value of different incentives. Once accomplished, it’s anticipated to have an output of 56,000 tonnes of batteries per yr.

Opposition from environmental group

While the challenge would improve Canada’s electrical car manufacturing capability, it has confronted resistance from environmentalists.

One group — the Centre québécois du droit de l’environnement (CQDE) — filed an injunction request in January to pause work at the website as a result of the authorities failed to submit the challenge to public hearings. 

The group argued that constructing the plant on the 170-hectare website would hurt wetlands, placing biodiversity in danger. 

But a Superior Court choose rejected the injunction request, saying Northolt had taken steps to make up for the injury by committing to investing $4.7 million in restoring different wetlands and planting 24,000 bushes. 

In March, Quebec Environment Minister Benoit Charette stated the authorities modified its guidelines earlier than approving the plant’s development — a transfer that specialists say has hindered public belief.

Before the challenge was introduced, the province elevated the threshold of battery manufacturing wanted to set off a BAPE evaluation, elevating it to 60,000 tonnes a yr from 50,000. 

Charette has stated a full BAPE evaluation would have taken 18 months and led the Swedish firm to look elsewhere.

But he insists “it was never the goal to get around the rules and avoid the BAPE.” 

A spokesperson for federal Industry Minister François-Philippe Champagne stated Tuesday the minister is “aware of the recent developments and will continue to work with all partners to foster a strong and sustainable EV sector in Canada.”

Quebec Economy Minister Pierre Fitzgibbon wrote on X Tuesday evening that Northvolt had knowledgeable the authorities of the evaluation and stated the Quebec challenge was not in query. 

“I am convinced that Northvolt is a partner of choice that will allow us to manufacture the greenest battery in the world,” he wrote.