Northvolt, a Swedish battery manufacturer with plans to build a factory worth $ 7 billion in Quebec, announced bankruptcy in Sweden.
The company said in a media announcement that the decision to declare bankruptcy was made after “exhausting effort to examine all available funds to ensure the real financial and operational future for the company.”
Northvolt “in recent months has experienced a number of challenges related to the connection that weakened their financial situation, including rising capital costs, geopolitical instability, later disturbances of the supply chain and market demand change,” says the message.
The company claims that its operations in North America are a solvent.
Now the trustee designated by the court will determine the future of Northvolt enterprises and assets, including technological and production facilities, said the company.
It was not immediately clear how the company's bankruptcy would affect the future of the massive electric electric batteries worth $ 7 billion, Northvolt builds in the Montérégie region on South Shore in Montreal.
In 2023, the Quebec government promised $ 2.9 billion in financing To secure the contract Northvolt. Ottawa engaged to $ 1.34 billion for the construction of the plant and another $ 3 billion of other incentives.
Yet, The Quebec government has invested $ 270 million In the project and a provincial pension investor, Caisse de dépôt et placing du quebec (CDPQ), also invested $ 200 million.
Christine Fréchette, the Minister of Economy of Quebec, said in the post on X that the government was disappointed in the situation, but said they were assessing their options. Earlier, she said that Northvolt's bankruptcy applications would not affect the Quebec battery.
“Our wish is that the controller will start looking for a buyer who will invest to take over all activities in North America and re -restart the Montérégie project,” she wrote.
Despite the bankruptcy of the Northvolt home company in Sweden, Northvolt North America, a subsidiary of a Swedish company, said in a media communiqué that a solvent remains and intends to honor her obligations and fulfill her financial obligations.
The Swedish government indicated that it could enter to support the company.