Quebec is halting its financial support for Northvolt’s planned $7-billion EV battery-cell factory in the Greater Montreal Area.

The venture was once billed as the largest private-sector project in the province’s history.

“Today, we are ending our funding of Northvolt in Quebec,” said Economy Minister Christine Fréchette in a statement this week. “As the company has not presented a satisfactory plan with respect to Quebec’s interests, we are asserting our rights in order to recover as much of our investment as possible.”

The Canadian Press reported that the province had invested $510 million in the project and pledged up to $2.9 billion in financing. But the government has refused Northvolt’s request for additional support.

According to multiple reports, a recent proposal from U.S. startup Lyten to acquire the project would have required more government money and more time, terms Quebec rejected. Lyten is negotiating to acquire Northvolt’s North American business, including the Greater Montreal project, after purchasing the firm’s European assets.

Northvolt filed for bankruptcy earlier this year. The Quebec government is now asking the province’s Superior Court to place its North American subsidiary into creditor protection, The Canadian Press reported. Citing court filings, the wire service reported that Northvolt Batteries North America owes more than $260 million on a government-backed loan used to purchase the land for the project. The province is seeking to recover nearly $200 million from frozen accounts and repossess the property.

The province contends that Northvolt is no longer able to complete the project in the short or medium. Hence, the company is insolvent.

According to The Canadian Press, the filing details how the relationship between Quebec and the company deteriorated, noting missed milestones and stalled progress since the Swedish parent declared bankruptcy in March. Quebec’s $270-million investment in the parent company and a $200-million investment from the Caisse de dépôt et placement du Québec have already been lost.

In a statement sent to multiple media outlets, Northvolt said Quebec’s decision to stop funding the project was “regrettable” and noted the company had been in discussions with potential buyers until this week.

A hearing has not yet been scheduled.

The federal government previously pledged to invest $1.34 billion in the first phase of the project. But Ottawa has stated the no funds have been disbursed yet.

Pictured: Proposed Northvolt battery plant in the Greater Montreal Area.

Rendering: Northvolt