Despite the worrying signals sent by Northvolt, Minister François-Philippe Champagne does not believe he rolled out the red carpet too quickly for the Swedish multinational by offering billions of dollars in public funds.
“Certainly not,” he assured at a press briefing Thursday in Montreal. “The battery industry came to North America, and the big gain for Quebecers is that we had a station here. The train was passing, and then we managed to have a station that stopped here.”
Asked by a journalist to rate his degree of optimism regarding the construction of the Northvolt plant in Quebec on a scale of 10, he appeared confident.
PHOTO CHRISTINNE MUSCHI, THE CANADIAN PRESS
Federal Minister of Innovation, Science and Industry, François-Philippe Champagne
I would say 10, on the fact that the plant will be built. Now, on the schedule, listen, it will depend on demand… Can it play a role of a few months? Maybe. That’s what I hear.
François-Philippe Champagne
On Wednesday, Northvolt announced a “strategic review” of its operations, acknowledging that it had planned an expansion that was “a little too aggressive” by pursuing two factory projects in Germany and Quebec. The Quebec plant, a $7 billion project in which Ottawa and Quebec each invested $1.37 billion, is targeted by this process.
“For 100 years”
In defending this subsidy to Northvolt, Mr. Champagne cited the words of Volkswagen CEO Oliver Blume in 2023. Ottawa promised aid of 8 to 13 billion to the German automaker for a battery plant in Ontario.
” [M. Blume] said: “I’m here for 100 years. At the most, I’ll have maybe four years of subsidies. I have to make money for 96 years.” When I look at the level of investment of Northvolt compared to that of Volkswagen, you are roughly in the same levels considering the production. So, I have confidence because the destination is clear.”
The minister also stated that Quebec was not in Northvolt’s sights at all at the outset and that it was his government’s intervention that tipped the balance. “I even kept the text messages, you will be able to judge for yourselves what I am telling you. At the time, Quebec was not even considered in the list of sites. I think we should be proud of what we have achieved as Quebecers, by bringing Quebec into the automobile industry.”