Quebec ready to lose money to save Northvolt

The entrance to Northvolt, the new EV battery plant being built by the Swedish manufacturer in Saint-Basile-le-Grand, east of Montreal, Que.,Thursday, May 16, 2024. (Christinne Muschi / The Canadian Press)

The Legault government is ready to lose some of its investment in Northvolt to ensure the company's survival.

One of the Swedish company's main creditors, Goldman Sachs, is demanding access to the assets of its subsidiaries abroad, particularly in Quebec, and the CAQ government has apparently agreed.

Radio-Canada revealed the details of the negotiations in progress and a source close to the matter confirmed the information to The Canadian Press on Tuesday morning.

Negotiations are continuing, it was reported, but Economy Minister Christine Fréchette has apparently given her agreement.

Thus, in the event of the company's bankruptcy, Goldman Sachs could recover the funds in Northvolt's account in Quebec, but the Legault government would keep $240 million, the value of the land planned to build the battery plant in Montérégie.

However, Investissement Québec has injected $500 million into the project and the Caisse de dépôt $200 million, funds that could therefore be at risk.

This report by The Canadian Press was first published in French on Oct. 22, 2024.