Quebec secures $200 million from Northvolt's financial accounts

In a significant turn of events, Northvolt North America has announced the closure of its operations, resulting in the layoff of its remaining 50 employees. The closure does not affect the approximately $21 million remaining in its four bank accounts.

The planned $7 billion mega-factory for battery cell production by Northvolt will not be built, dealing a blow to Quebec's ambitions in the renewable energy sector. The Quebec government, which had frozen 352 megawatts of energy for Northvolt, now has the opportunity to allocate this energy to other projects.

The closure of Northvolt North America's operations does not change the need for the Quebec government to recover at least $60 million to cover the $240 million loaned to Northvolt and $20 million in interest. A hearing before the Superior Court will determine what happens to the land and the funds in the remaining bank accounts.

The layoff notices were transmitted to the Quebec Ministry of Employment and Social Solidarity on Thursday. Northvolt North America's leaders made the decision to lay off employees to protect them, and the liquidator may potentially rehire some workers to assist in winding down operations.

The recovery of funds from Northvolt North America has already begun. The Quebec government recovered $200 million as part of its efforts to limit losses from Northvolt's insolvency. This recovery was made by seizing three of Northvolt America's seven bank accounts.

The details of the sales process for the land were not provided in the judicial request. It is expected that a sales process will be put in place for the land. An analysis of how to allocate the 352 megawatts of energy is also expected.

Raymond Chabot has been proposed to act as controller in the case. However, the search results do not provide the name of the liquidator who will oversee the Northvolt America land liquidation process.

The closure of Northvolt North America's operations marks a significant setback for the renewable energy sector in Quebec. The government will now focus on recovering the outstanding funds and finding suitable projects for the allocated energy.