Northvolt Near Deal with Canada on $5.3 Billion Battery Plant in Quebec

Swedish manufacturer chose Quebec to build ‘world’s greenest battery’

Swedish manufacturer Northvolt AB is close to a deal to build an electric-vehicle battery plant near Montreal. PHOTO BY MIKAEL SJOBERG /Bloomberg

Swedish manufacturer Northvolt AB is close to a deal to build an electric-vehicle battery plant near Montreal, a project that’s expected to be worth about $7 billion, according to people familiar with the matter.

The Canadian and Quebec governments are preparing to give financial aid to Northvolt that may be worth billions, following a similar agreement with Volkswagen AG to build an EV battery plant in Ontario, the people said. An announcement is likely to be made in the coming weeks, though negotiators are still working on final details, they said, speaking on condition they not be identified because the matter is private.

A deal with Northvolt would underscore Prime Minister Justin Trudeau’s ambitions for Canada to capture a sizable piece of the North American electric-vehicle supply chain, at a huge cost to the public purse. Trudeau’s government, and the government of Ontario, have pledged more than C$14 billion to