Montreal Northvolt EV Battery Plant Project Continuing Despite Firm’s Struggles
Northvolt will proceed with its electric-vehicle battery plant in the Montreal area despite facing financial struggles, says the Swedish company.
In a surprise move, Volvo removed Northvolt from their jointly owned battery plant project in Sweden, contending that the Swedish company failed to meet its financing obligations.
Northvolt has subsequently pledged to prioritize its other planned manufacturing facilities in Sweden, along with projects in Canada and Germany, Bloomberg reported.
Northvolt North America CEO Paolo Cerruti acknowledged that the company may have been “too ambitious” and reaffirmed that it has no intention to request additional federal or provincial government funding for its planned lithium battery plant near Montreal.
“Recent months and weeks have been difficult, and we are going through a crucial period in the history of our company,” Cerruti admitted.
Cerruti made the comments at an EV industry conference in Montreal before Volvo announced plans to take full ownership of the Swedish plant in accordance with the terms of the companies’ agreement. The cost of the Montreal-area plant has been pegged at $7 billion.
Cerruti assured the audience of EV-related company executives that Northvolt remains committed to Quebec, stating that the company is in the province “to stay.” However, the extent to which the ongoing restructuring in Sweden will impact the Montreal project remains uncertain.
“The work is still ongoing and we don’t have all the answers yet,” he said. “We are doing this work day and night so that we can come back with answers to all the questions, which will take us a few more weeks.”
In September, Northvolt announced 1,600 layoffs in Sweden, accounting for a fifth of its workforce, as part of cost-cutting measures amidst financial challenges. Still, Cerruti emphasized that Northvolt will not seek further funding from Quebec or Ottawa.
“We have a timetable for financial support as part of what was announced in September last year and we have not planned to ask for more money,” he said. “As part of the recent refinancing of the company, we did not ask the government for money, neither federal nor provincial.”
Northvolt is grappling with its financial difficulties amid a decline in global EV demand as Ford and General Motors plan to scale back production.
Photo: Peter Lundgren / Shutterstock.com
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