(DIR) Home
        
        
       Northvolt to stay the course for $7B Quebec battery plant despite
       'strategic review'
        
 (HTM) Source
        
       ----------------------------------------------------------------------
        
       Swedish EV battery manufacturer Northvolt says construction on its
       $7-billion plant on Montreal's South Shore will continue, even as the
       company undergoes a "strategic review" of its activities.
        
       The review comes as global demand for electric vehicles has slowed,
       with both Ford and General Motors saying they would _scale back_ their
       production of electric vehicles.
        
       In a statement sent Tuesday, a spokesperson for Northvolt says the
       review will determine project timelines, but it is too soon to say
       what impact it could have on the plant being built in 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 said.
        
       The company has two massive plants in the works — one in Canada and
       the other in Germany — and has fallen behind on the building schedule
       of its mega-factory in Sweden.
        
       Pascal Paradis, MNA for Jean-Talon and the Parti Québécois critic for
       energy, said the provincial government should use the opportunity to
       reflect "on its own strategy to promote social acceptability of the
       project," including through 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 construction was announced.
        
       Quebec's government pledged $2.9 billion in financing to secure the
       deal with Northvolt last year, all while the Legault government was
       steeped in contract negotiations with teachers and nurses.
        
       Meanwhile, Ottawa committed up to $1.34 billion to build the plant and
       another $3 billion worth of other incentives. Once completed, it is
       expected to have an output of 56,000 tonnes of batteries per year.
        
       ## Opposition from environmental group
        
       While the project would increase Canada's electric vehicle production
       capacity, it has faced 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 site
       because the government failed to submit the project to public
       hearings.
        
       The group argued that building the plant on the 170-hectare site would
       harm wetlands, putting biodiversity at risk.
        
       But a Superior Court judge rejected the injunction request, saying
       Northolt had taken steps to make up for the damage by committing to
       investing $4.7 million in restoring other wetlands and planting 24,000
       trees.
        
       **_WATCH | Are EV batteries recyclable?_**
        
       ### EVs and e-bikes are more popular than ever. Are all those
       batteries headed for landfills?
        
       There's a push in Quebec to find new technology that could help
       recycle materials found in rechargeable batteries, like those in
       electric cars and e-bikes.
        
       In March, Quebec Environment Minister Benoit Charette said the
       government changed its rules before approving the plant's construction
       — a move that experts say has hindered public trust.
        
       Before the project was announced, the province increased the threshold
       of battery production needed to trigger a BAPE review, raising it to
       60,000 tonnes a year from 50,000.
        
       Charette has said a full BAPE review would have taken 18 months and
       led the Swedish company 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 said 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 night
       that Northvolt had informed the government of the review and said the
       Quebec project was not in question.  
         
       "I am convinced that Northvolt is a partner of choice that will allow
       us to manufacture the greenest battery in the world," he wrote.
        
        
        
        
       ______________________________________________________________________
                                                 Served by Flask-Gopher/2.2.1