The Quebec government has confirmed that its $270 million investment in Northvolt AB, the Swedish parent company of battery manufacturer Northvolt, is now worthless following the company’s bankruptcy earlier this month.
Speaking on Wednesday, Economy Minister Christine Fréchette said bluntly, “We estimate that the value of this amount is lost.” (via La Presse)
The funds were part of a massive $2.9 billion joint investment by Quebec and the federal government aimed at bolstering electric vehicle (EV) battery production in Quebec through Northvolt’s expansion into Canada. The federal government has not announced any details about the value of their investment in Northvolt.
Adding to the blow, Quebec’s pension fund manager, the Caisse de dépôt et placement du Québec, had separately committed $200 million to the Swedish firm. With Northvolt AB officially filing for bankruptcy on March 12, those public investments are now effectively gone.
The situation has sparked political backlash. Parti Québécois MNA Pascal Paradis accused the government of misleading Quebecers about the security of the investment. “The Premier claimed we had a factory in Sweden as collateral. That’s not true,” Paradis said in a post on X. “Minister Fréchette said Quebec had guarantees and a privileged status in the event of bankruptcy. That’s not true either.”
Faillite de Northvolt: le PQ a forcé la ministre Fréchette à dire la vérité.
— Pascal Paradis (@pascalpparadis) March 27, 2025
Les 270M$ pariés dans la maison-mère de Northvolt ne valent plus rien. ZÉRO. CDPQ a déjà annoncé que son 200M$ investi en Suède vaut désormais 0$. Le premier ministre a prétendu en chambre qu’on avait… pic.twitter.com/U5peZKEUPI
While the Swedish parent company has collapsed, Northvolt’s North American subsidiary—which is currently building a large battery plant in Saint-Basile-le-Grand, Quebee—remains operational. However, its future now depends on the direction taken by a court-appointed trustee overseeing the bankruptcy process in Sweden.
Fréchette sought to reassure the public that not all taxpayer money is at risk. She emphasized that the separate $240 million Quebec granted to Northvolt to purchase land in Montérégie is secured. “That amount is protected through security interests on the land and the assets of Northvolt’s North American subsidiary,” she said.
