Quebec seeks judicial declaration of insolvency for Northvolt's Canadian branch

Quebec's Economy Minister, Christine Fréchette, announced the withdrawal of support for the Northvolt battery project on Tuesday, marking a significant turn of events in the relationship between the Quebec government and the Swedish battery manufacturer.

The court documents, which were made public by The Canadian Press on September 3, 2025, provide details about the reasons behind the Quebec government's decision. They reveal a deterioration in the relationship between Northvolt and the Quebec government in recent months.

At the heart of the dispute is Northvolt Batteries North America, which owes more than $260 million on a government loan. The loan was used by Northvolt Batteries North America to buy land near Montreal to build a $7-billion battery plant.

The court documents likely contain information about the specific issues that led to the deterioration in the relationship, including potential consequences of Northvolt's insolvency for the battery plant project near Montreal.

Furthermore, the Quebec government seeks authorization from the court to start a process for the sale or repossession of the land owned by Northvolt Batteries North America. The court documents could contain details about the process for withdrawing nearly $200 million from Northvolt's frozen accounts, which the Quebec government wants to access.

The court application was filed due to losses incurred by the Quebec government on an electric-vehicle battery project. The court documents may include evidence supporting the Quebec government's decision to seek authorization for the sale or repossession of Northvolt's land.

The dispute is associated with Peter Carlsson, who is involved in the North American branch of Northvolt. The court documents might provide insight into the progress of the electric-vehicle battery project and the losses incurred by the Quebec government.

This development comes as a setback for the Northvolt project, which was hailed as a major investment in Quebec's green economy. The outcome of the court case could have significant implications for the future of the battery plant project and the relationship between Quebec and Northvolt.