The stake held in the share capital of the Scandinavian company Northvolt by Investissement Québec is estimated at approximately 5%.
This is what the Minister of Economy, Innovation and Energy, Pierre Fitzgibbon, affirmed Tuesday in parliamentary committee, adding that it is a debenture convertible into ordinary shares.
He was responding to a question from the official opposition spokesperson for the economy, Frédéric Beauchemin, who wanted to know the level of participation.
Asked to clarify Pierre Fitzgibbon’s response, his ministry indicates that the percentage of 5% is an estimate of the current participation of the Economic Development Fund with its convertible debenture.
We cannot know today the percentage of ownership that would be effective during a conversion, since we do not know the time of the conversion nor the valuation of the company at that time.
Pierre Fitzgibbon, Minister of Economy, Innovation and Energy
The Swedish company must receive more than $7 billion in total from Quebec and Ottawa for its battery cell factory project in Montérégie.
Quebec’s contribution is 1.5 billion in subsidies for the production of cells, as well as 367 million in loans and 436 million in grants to help the construction of the factory. The sum of 567 million was also earmarked for a stake in the company.
Sotck exchange
Northvolt is preparing to make the jump to the stock market. “There will be an initial public offering,” recalled Pierre Fitzgibbon on Tuesday.
European media have reported in recent months that Northvolt could list on the stock market with an initial valuation of more than US$20 billion. The operation could take place as early as this year if conditions are favorable on the financial markets.
“It is not my duty to speculate, but this [la participation en actions] could technically bring in a lot of money,” Pierre Fitzgibbon said Tuesday morning during the study of the budgetary appropriations of the Ministry of the Economy, Innovation and Energy for the 2024-2025 financial year.
Pierre Fitzgibbon said the government was keen to get participation “at the top” to take part in the whole work.
PHOTO MARCO CAMPANOZZI, LA PRESSE ARCHIVES
Pierre Fitzgibbon, Minister of Economy, Innovation and Energy
The objective of the Ministry of the Economy is not to make investments to make money, he however clarified.
Pierre Fitzgibbon concedes that the sums granted to Northvolt are significant. He nevertheless adds that the capital structure is such that for the investment in fixed assets part, he judges that the subsidy of 436 million (“forgivable” loan) is “reasonable”.
“This is clearly a very bold project on the part of the government,” said Pierre Fitzgibbon.
He recalled that the intention behind the battery sector strategy is to have a fully integrated chain from mining to recycling. It was important to find a cell manufacturer to help complete the chain, the minister said.
“This 7 billion project is the biggest private project that Quebec has ever seen. »
The minister continued by saying he was happy to have been able to set up a battery sector worth $16 billion in projects announced to date.
“I would like it to continue and go up to 20 or 25 billion. It could stop at 16, but I believe it will go to 20 billion and there we will possibly start to be more rigorous on the [soutien] financial due to the fact that after having built our notoriety, we will be able to be less generous. »
GES: Fitzgibbon contradicts Minister Charette
Northvolt’s giga-battery factory project will not reduce Quebec’s greenhouse gas (GHG) emissions, Minister of the Economy, Innovation and Energy Pierre Fitzgibbon also said on Tuesday. thus contradicting his counterpart responsible for the Environment Benoit Charette, who for his part persists and signs. “It has no impact on Quebec’s GHGs,” declared Minister Fitzgibbon during the study of his ministry’s budgetary appropriations, in response to a question from solidarity MP Haroun Bouazzi. “Northvolt does not reduce GHGs [au Québec] “, he added. The Minister of the Environment, the Fight against Climate Change, Wildlife and Parks nevertheless maintained the opposite in March, affirming in an interview with The Press that the Northvolt project was essential to allow Quebec to achieve its GHG reduction target of 37.5% compared to 1990 levels by 2030. In March, Minister Charette argued that the production of Northvolt would enable GHG reductions of three million megatons on a global scale, “the equivalent of a million thermal cars” removed from circulation.
Jean-Thomas Léveillé, The Press
Read the full text