Power supply to Northvolt in Quebec is terminated

In a significant turn of events, the Quebec Government has definitively severed ties with the Northvolt project in Monteregie, following a series of developments and critiques from various political figures.

The decision, announced by Minister of Economy and Energy, Christine Frechette, marks the end of financing for Northvolt in Quebec. The 352 megawatts of energy reserved for the Northvolt project will now be available for other purposes or projects, as the reservation for Northvolt is no longer applicable.

The move comes after the Quebec Government's $270 million investment in the parent company is now considered lost, following several unsuccessful takeover plans proposed by Northvolt. The American company, Lyten, has expressed interest in acquiring Northvolt's North American assets, but no official announcement has been made yet.

The news has been met with responses from political leaders. Quebec Solidaire spokesperson Ruba Ghazal referred to the Northvolt project as a "CAQ-signed fiasco," while Liberal leader Pablo Rodriguez criticised Premier Francois Legault for making Quebecers pay for his "economic improvisation" regarding the project.

Prime Minister Legault, however, has sworn he knew nothing about the costs of SAAQclic until February 2025. He admitted that ministers should have asked more questions about the costs, but defended his government's overall approach to economic development.

The battery sector, despite some bad news, remains promising, according to Yan Cimon, a professor at the Faculty of Administrative Sciences of Laval University. He considers the released energy block a strategic asset for Quebec to attract potential foreign investors and local businesses.

The sector, notably in Becancour, where nearly 3,000 people are working on the construction of the factories, continues to prosper, with Minister Frechette expressing confidence in its future.

Keith Norman, the director of Lyten, has stated that if the opportunity arises, Lyten would be happy to work with the Quebec government to develop the site in Monteregie. Meanwhile, Northvolt has described the Quebec Government's decision as "regrettable."

The government has also announced its intention to seek repayment of a $260 million loan for the land purchased for the Northvolt project. The Parti Quebecois MNA Pascal Paradis accused the government of trying to "hide" its decision on the Northvolt project.

As the dust settles, the focus shifts to the potential future of the site in Monteregie and the broader battery sector in Quebec. The interest shown by Lyten and the government's commitment to the sector suggest that new developments are on the horizon.