Quebec energy minister concerned about the message being sent in lawsuit against battery plant

An aerial view of the construction site of the new EV battery plant, Northvolt, in Saint-Basile-le-Grand, east of Montreal, Quebec, Friday, Jan. 19, 2024. The Swedish multinational announced Thursday that work had been temporarily suspended on the site in McMasterville and Saint-Basile-le-Grand “out of respect for the ongoing legal process.” THE CANADIAN PRESS/Christinne Muschi

Quebec's Minister of the Economy, Innovation and Energy, Pierre Fitzgibbon, is concerned about the message being sent to foreign investors by the litigation in the Northvolt case.

His federal counterpart, François-Philippe Champagne, however, sees things differently.

In an interview with radio host Paul Arcand on Monday morning, Fitzgibbon said he was "absolutely" concerned about the "wave of hostility" towards the electric vehicle battery plant project in the Montérégie region.

"We have to be careful," he said. "My fear is that Quebec's credibility will be affected, [and] let's just say that people are clearly asking questions and are we welcome in Quebec?"

The minister said that he had to "be careful" when answering questions from the 98.5 host, pointing out that there was an "injunction that will be heard tomorrow."

Northvolt temporarily halted construction work on its plant on Friday while the Superior Court ruled on a request for an injunction.

The Centre québécois du droit de l'environnement and three citizens demanded that the work be stopped. They argue that the multinational's land is a "habitat for numerous threatened or vulnerable animal species" and are asking that the project be submitted to the Bureau d'audiences publiques sur l'environnement (BAPE).

A judge will hear the arguments of the various parties on Tuesday morning in Montreal. Until then, work is on hold on Northvolt's land in McMasterville and Saint-Basile-le-Grand.

Champagne has a different perspective

The federal Minister for Innovation, Science and Industry is not reading the same story as his provincial counterpart.

According to Champagne, who spoke to the media on Monday morning, the fact that the Northvolt case has become embroiled in legal proceedings has not dampened the interest of foreign investors.

"I'd even say the opposite; I'm getting more and more calls from people who want to come and set up here because we have the workforce and strong ecosystems," said Champagne.

Northvolt "knew what they were getting into" and "these are big boys," the minister added.

Still commenting on the opposition to the project, Champagne added that "in a society like ours, people can express their opinions," but he asked the public to "look at the ultimate objective," which is to "transform Quebec industry towards a greener industry that will care for the environment and enter the 21st century economy."

"You can't get more environmentally conscious than the Swedes. We've chosen them. That's what people back home need to understand. We didn't choose just anyone; we chose a Swedish company that cares about the environment and also cares about working with communities," said Champagne.

'No need' for a BAPE

Part of the Northvolt battery cell megaproject, the part concerning recycling activities, will have to be assessed by the Bureau d'audiences publiques sur l'environnement (BAPE).

However, a number of environmental groups and citizens are calling for the entire project to be submitted to a BAPE.

When asked by Paul Arcand on Monday morning, Fitzgibbon indicated that there was "no need" to hold a BAPE because "the rules do not require it."

He added, however, that the project would have to "comply with environmental standards" imposed by the Environment Ministry.

A regulation was amended last February by Quebec to allow the Northvolt project to avoid a BAPE review, according to information first relayed by Radio-Canada.

The plant's production capacity would be 56,000 metric tonnes, while the Regulation respecting the assessment and examination of the environmental impact of certain projects was amended to avoid a BAPE assessment for battery plants that produce 60,000 metric tonnes or less.

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