Quebec ends its Northvolt battery plant project, writing off $270M after bankruptcy, while pledging to recover a $240M loan and redirect resources.
Quebec Government Confirms Project Termination
Decision Announced by Economy Minister
Quebec Economy Minister Christine Fréchette confirmed Tuesday that the province will no longer invest in the Northvolt Batteries North America project. She cited the company’s failure to provide a plan that met Quebec’s economic and strategic interests.
A Project Once Promised Billions
The Northvolt initiative was announced as a $7-billion battery plant intended for Saint-Basile-le-Grand and McMasterville in Montérégie. It was promoted as a cornerstone of Quebec’s clean-energy transition, with projections of 3,000 new jobs and global leadership in battery production.
Timeline of Collapse
The partnership effectively unraveled after Northvolt declared bankruptcy in Sweden in March 2025. Despite reassurances earlier this year, Quebec officially acknowledged this week that the venture could not be salvaged.
Financial Stakes for Quebec
The province invested $510 million in the project, including a $240 million guaranteed loan and a $270 million equity investment in the parent company. Fréchette confirmed the $270 million is lost, but insisted Quebec will recover the $240 million loan due to its secured status.
Energy and Industrial Strategy Impact
Quebec had reserved 352 megawatts of hydroelectric power for the project. That energy allocation will now be redirected to other industrial developments. Despite the setback, the government maintains confidence in its broader “filière batterie” strategy, pointing to other battery producers already operating in the province.
Criticism from Opposition Parties
Opposition leaders reacted sharply, calling the Northvolt project a major failure by the Coalition Avenir Québec government. Pablo Rodriguez of the Liberal Party said the government “put all its eggs in one basket.” Ruba Ghazal of Québec Solidaire called the loss “unacceptable,” and Parti Québécois MNA Pascal Paradis described it as “poorly planned, mismanaged, and wasteful.”
Next Steps for Quebec
Fréchette assured Quebecers that while the province has written off part of its investment, efforts will focus on recovering secured funds and ensuring that Quebec’s battery production strategy continues to attract reliable partners.
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