This week, the Swedish company Northvolt is back in the news. This manufacturer of batteries for electric cars has announced bad news: it will cut a lot of jobs in its factories in Sweden. But why are we talking about it so much in Quebec, almost 6,000 kilometers away? I’ll explain!
Lots of fewer jobs
1600. This is the number of jobs that will disappear in Northvolt’s Swedish factories. The company’s boss explains that he needs fewer workers at the moment because there is a drop in orders for his batteries. Because of this, the company is in a difficult situation and needs to cut expenses.
He clarified that this decision only concerns its factories in Sweden. But this news also worries Quebec politicians and business people, among others. For what ?
A huge project in Quebec
This is because the Northvolt company plans to build a “mega-factory” in Quebec. It would be the largest industrial project in the history of the province.
The governments of Quebec and Canada have promised $7 billion to the Swedish company so that it can set up on the South Shore, in the Montreal region. Since it’s a LOT of money, some people are concerned to learn that the company’s business is doing less well. They think there is a risk in betting so much on Northvolt. The company may not be as strong as we thought.
What will happen?
The opposition political parties (which are not in power) would like there to be discussions on the best ways to use public money. Because the money promised to Northvolt comes from citizens who pay taxes, like your parents. In fact, it’s a bit as if everyone was going to give a little money to build the battery factory.
For its part, the Quebec government wants to be reassuring. Christine Fréchette, Minister of the Economy, Innovation and Energy, says she will remain very attentive to the situation. And if the project works as planned, the factory could open around 2028. Count on us to keep you informed!
By Esther Sauliot
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