Swedish battery giant Northvolt formally announced in a press release on Thursday its decision to develop its new li-ion battery gigafactory in Saint-Basile-le-Grand and McMasterville, Quebec.
Notably, this new project marks a significant milestone for the company as its first-ever factory beyond Europe.
Project details
Northvolt’s Quebec battery gigafactory will have an annual lithium-ion cell production output of 60 GWh. It will also have supporting facilities to produce the necessary active cathode and recycling materials.
According to CBC, the site will cover 170 hectares, approximately 30 km east of Montreal. The first phase of the development will start by the end of the year.
It will have $7 billion in total investment to initially produce 30 GWh of battery cell capacity per annum. The company will begin battery production as early as 2026.
It is also worth noting that it will generate new job positions of up to 3,000.
The company has yet to disclose the official timeline for the second phase, which will raise the annual capacity by twofold.
“In the seven years since Northvolt was founded, we have pursued a singular goal — to establish a new, sustainable model for battery manufacturing. Today, we are expanding our ambitions by bringing Northvolt to Canada.”
Peter Carlsson, Northvolt CEO and Cofounder
Government support
The government of Quebec and Ottawa pledged to invest a total amount of $2.7 billion to aid the factory’s development. According to the report, they will provide the company with manufacturing support of up to $35/kWh to match the US IRA’s Advanced Manufacturing Production Credit.
Apart from that, the company will also benefit from government incentives of up to $4.6 billion in a five to nine-year period. Of that total, Quebec will provide one-third or $1.5 billion.
“This is a historic and transformative announcement. This facility will be able to produce batteries for a million electric vehicles a year and, at full production capacity, the plant will contribute up to $1.6 billion to our economy.”
Prime Minister Justin Trudeau
However, the project gained opposition over potential noise and pollution concerns. According to Mining.com, McMasterville municipal council has submitted a formal petition with 700 signatures to urge the government to cancel Northvolt’s battery gigafactory project.
See Also:
- Ford and South Korean partners will build a $1.2 billion battery factory in Quebec
- Tesla, LG, Quebec, and others work on new ‘battery passport’
- Zinc-Air battery chemistry could improve EV performance, research suggests
- GM secures CAD 300 million fund for its new EV battery parts factory in Canada
- Lion Electric Company announces the production of its first battery pack at the Mirabel plant
Quebec is indeed an ideal site for Northvolt’s battery gigafactory owing to its superior access to 100% renewable energy sources and abundant raw materials. The project is apparently “the biggest private investment in the recent history of Quebec,” as noted by Premier François Legault.
