Northvolt reiterates its intention to build a factory in Quebec

2024-07-18 22:08:44

Northvolt reiterated that despite the difficulties faced by the Swedish battery maker, its projects in Quebec have not been affected.

Its North American spokesman reiterated that the company’s current strategic review does not intend to “call into question” the construction of its battery plant in Monteregie, although plans may be delayed.

“Our commitment to Quebec and our intention to build Northvolt VI has not changed. The project is moving forward. Construction is continuing at this moment,” communications director Laurent Therrien told The Canadian Press on Thursday.

The interview was requested by Northvolt through a public relations company. Mr Therrien explained that the multinational company wanted to “correct [ses] Intention and [ses] After certain media published articles, it expressed its “ambitions” for its development on Montreal’s South Shore.

Mr Therrien said these “show that the Quebec project might be at risk due to operational difficulties at Northvolt Ett”, the plant in northern Sweden.

In recent weeks, there have been reports that BMW canceled a contract worth regarding $3 billion with the Swedish company due to delivery delays.

Northvolt President and CEO Peter Carlsson then announced the company would slow down its international expansion plans to focus on its Swedish factory amid reports that the company was conducting a strategic review of all its business units.

Northvolt’s latest annual report mentioned that the company might “pause expansion investments in new plants at any time if necessary,” the Journal de Montreal reported recently.

“So far, we have not changed any plans and the strategic review of our activities currently underway will not lead to doubts regarding the Northvolt 6 project in Quebec,” Mr Therrien defended.

The spokesman mentioned that the business model of the large factory in Montérégie is “very interesting” for the young company, which has been established for eight years. He said North America is a new market to conquer, “with a growing interest in electrification.”

Nevertheless, postponing the deadline for the Quebec project is one of the options being considered in the strategic review, the conclusion of which should be published in September, Mr. Therrien confirmed.

According to him, the ongoing exercise demonstrates the seriousness of the organization, which noted that its first plant in Sweden was “slower than expected”.

“To some extent, it’s healthy to ask ourselves whether our priorities are aligned and whether our execution cadence is right,” he insisted, also highlighting that the manufacturer launched expansion projects in Germany and Canada at almost the same time.

“Is the speed of execution such that we can eat the pain in a smart, structured way to be successful in these programs? Ultimately, our goal is to make them successful,” he added.

During the strategic review, Northvolt continues to hire in Quebec. So far, the company has fewer than 150 employees locally. Mr. Therrien said most of the hires are in engineering positions, especially planning the construction of the plant.

Excavation work

The giant factory project on Montreal’s South Shore, spanning the Saint-Basile borough and McMasterville, is expected to cost $7 billion.

Mr. Thelin said excavation work is underway. The first building dedicated to cell production must first rise from the ground. According to the current schedule, production is scheduled to begin in 2026.

Northvolt also plans to build a cathode active materials plant and a recycling plant, which must be evaluated by the Office of Environmental Public Hearings.

Watch via video

1721348757
#Northvolt #reiterates #intention #build #factory #Quebec