Northvolt declares bankruptcy in Sweden, asking questions about the future of a massive battery factory in Quebec
Northvolt, a Swedish battery manufacturer with plans for the construction of a $ 7 billion in Quebec factory, declared bankruptcy in Sweden.
In a statement in the media, the company announced that the decision to declare bankruptcy was made after “an exhaustive effort to explore all available funds to secure the sustainable financial and operational future of the company.”
Northvolt has “experienced a number of complicated challenges in recent months that have disturbed their financial position, including growing capital costs, geopolitical instability, subsequent disorders of the supply chain and the pursuit of the market,” the statement said.
The company says its North American operations are solvent.
Now the guardian appointed in court will determine the future of Northvolt’s companies and property, including technological and production facilities, the company said.
It was not immediately clear that the bankruptcy of the company would affect the future of a huge electric vehicle battery in the amount of $ 7 billion in Northvolt in the Montérégie region on the southern coast of Montreal.
2023 promised $ 2.9 billion to ensure a job with North. Ottawa is worth the construction of the plant and another $ 3 billion worth 3 billion incentives.
For now, Quebec’s government has invested $ 270 million in the project and a provincial pension investor, Caisse de dépôt et plaque du québec (CDPQ), also invested $ 200 million.
The Minister of Economics of the Quebec Economics, Christine Fréchette, said in a post on X that the Government was disappointed with the situation, but said they were evaluating their capabilities. She previously said that the Northvolt Banchrot report would not affect the Battery plant in Quebec.
“It is our desire that the controller will start looking for a buyer who will invest to take over all North American activities and restart the Montérégie project,” she wrote.
Despite the bankruptcy of Northvolt’s home companies in Sweden, Northvolt North American, a branch of the Swedish company, she said in the media that she remained solvent and intended to honor her obligations and fulfill her financial obligations.
The Swedish government indicated that it could enter into supporting companies.
