Wednesday, July 17, 2024
NewsNorthvolt Could Install its Next Battery Plant in Canada

Northvolt Could Install its Next Battery Plant in Canada

Northvolt is likely to install its next battery factory near Montreal.

  • The Swedish company is primarily looking at a site on the south shore of Montreal.

  • A deal with the federal and provincial governments could be announced soon.

  • This factory could be one of the cleanest in the world due to the use of hydroelectric power.

Northvolt and the Canadian government could soon reach a deal that will lead to the construction of a new EV battery factory on the south shore of Montreal.

The Swedish company currently operates a production facility in its home country and it has plans to build two other factories in Europe. Adding a manufacturing presence in North America will make its products more attractive to automakers by opening the door to U.S. subsidies under the Inflation Reduction Act.

This act combined with the Canadian government’s desire to become a major player in the North American EV supply chain is the reason why a number of similar projects have been undertaken in Canada recently, such as by Volkswagen, General Motors, and Stellantis.

As with these other projects, the government is expected to provide financial support that could be worth billions of dollars to Northvolt, thus helping to cover a large portion of the project’s total costs, which are expected to reach $7 billion.

Once in operation, this new factory could supply automakers such as Volvo, BMW, and Volkswagen, with whom the company already has partnerships.

While an announcement has yet to be made and Northvolt says it is still investigating potential locations across the United States and Canada, everything points to the company implanting itself in Saint-Basile-le-Grand, about 25 minutes from Montreal.

Choosing Quebec instead of Ontario like Volkswagen and Stellantis could help Northvolt achieve its goal of making the “World’s greenest battery” due to the province’s clean hydroelectric power supply.

The project also includes a recycling plant in addition to the cathode factory and battery cell assembly line, furthering the company’s environmental goals.

Sources close to the matter say that negotiations between Northvolt and the involved government instances are still ongoing, but an announcement should come in the next few weeks.

Source: Automotive News Canada


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