Prime Minister of Canada, Justin Trudeau, and Premier of Quebec, François Legault, announced a combined capital commitment of C$2.71 billion to support a new electric vehicle (EV) battery manufacturing facility by Northvolt Batteries North America in Quebec.
The plant, once fully operational, is expected to contribute up to $1.6 billion to the GDP annually and support tens of thousands of jobs nationwide.
“Once again, with Northvolt’s new facility, the world is choosing Quebec and Quebec workers. When electric vehicle batteries are made in Quebec, it’s a win-win-win—for workers, for communities, and for the environment,” said Trudeau on Thursday.
“I am very proud to announce the largest private investment in Quebec’s recent history: a structuring project by Northvolt with a total value of $7 billion,” said Legault.
The facility will occupy an area equivalent to 318 football fields and have an annual battery cell manufacturing capacity of up to 60 GWh. The first phase of the project, valued at $7 billion, will create up to 3,000 jobs in the region. This phase will also include facilities for cathode active material production and battery recycling, making it the only fully integrated facility of this type in Canada.
Canada and Quebec have committed to providing Northvolt with production support to match the U.S. Inflation Reduction Act’s Advanced Manufacturing Production Credit, equalling up to $35 per kWh. Government production incentives will total up to C$4.6 billion, with one-third to be paid by the Quebec government. Canada will provide up to C$1.34 billion in capital commitment, and Quebec will contribute C$1.37 billion.
“Today’s announcement is more than just a battery cell manufacturing project; it is the culmination of our desire to attract the world’s biggest players so that we’re not only ready for tomorrow’s economy, but we’re making Quebec and Canada the green suppliers of choice,” said François-Philippe Champagne, Minister of Innovation, Science and Industry.
The project is in line with Canada’s and Quebec’s strategy to attract global investments in the critical minerals and electric vehicle manufacturing sectors. It follows significant investments already made in the Canada and Quebec battery supply chain with companies like Volta Energy Solutions Canada, EcoPro CAM Canada, and GM-POSCO.
The plant, set to be located near Saint-Basile-le-Grand and McMasterville, about 30km outside of Montreal, will focus on sustainability, aiming to reduce its carbon footprint by approximately 90% by 2030 and use at least 50% recycled materials in its cell production. The facility will produce various battery components, including lithium-ion battery cells and materials recovered from battery recycling.
