$270M investment in Northvolt’s parent company now worthless, says Quebec government

The $270 million invested by Quebec in Northvolt’s parent company in Sweden is now worthless, confirmed the provincial government.

“We estimate that the value of this amount is lost,” said Christine Fréchette, Minister of the Economy, Innovation and Energy, on Wednesday.

The amount was part of a $2.9 billion investment by Quebec and Ottawa.

The Caisse de dépôt et placement du Québec had also invested $200 million in the Swedish company.

“The premier claimed in the House that we had a plant in Sweden as collateral. That’s not true,” argued Parti Québécois (PQ) MNA Pascal Paradis in a post on X. “Minister Fréchette claimed that Quebec had guarantees and a truly privileged status in the event of bankruptcy. This is not true.”

Northvolt declared bankruptcy in Sweden on March 12.

Its North American subsidiary remains active, but its future is in the hands of a trustee appointed by the Swedish court to oversee the bankruptcy process.

Quebec had also granted Northvolt $240 million for the purchase of land in the Montérégie region.

According to Fréchette, that sum is secured by collateral on the land and assets of the Northvolt North America subsidiary.

-- This report by The Canadian Press was first published in French on March 27, 2024.