Northvolt reiterates that its project in Quebec is not compromised, despite difficulties hanging over the Swedish manufacturer of electric batteries.
Its spokesperson in North America reiterates that the company’s current strategic review does not aim to “call into question” the construction of its battery cell plant in Montérégie, although the schedule could be postponed.
“Our commitment to Quebec and our intentions to build the Northvolt Six plant are unchanged. The project is moving forward. Construction is currently continuing,” communications director Laurent Therrien told The Canadian Press on Thursday.
The interview was requested by Northvolt through a public relations firm. Mr. Therrien explained that the multinational wanted to “rectify [ses] intentions and [ses] ambitions” regarding its development on the South Shore of Montreal following the publication of articles in certain media.
These “suggested that the Quebec project could be at risk due to operational difficulties at Northvolt Ett,” the parent plant located in northern Sweden, Mr. Therrien said.
In recent weeks, it has been reported that BMW has cancelled a contract worth around 3 billion with the Swedish company due to delivery delays.
Subsequently, Northvolt President and CEO Peter Carlsson announced that the company would slow down its international development plan to focus on its plant in Sweden. It was indicated at that time that the company was conducting a strategic review of all its business units.
Northvolt’s latest annual report states that “if necessary” the company could “at any time suspend expansion investments in new plants,” the Montreal Journal.
We have not changed anything in the game plan so far and the strategic review of our activities currently underway will not result in a questioning of the Northvolt Six project in Quebec.
Laurent Therrien, Northvolt’s Director of Communications for North America
The spokesperson mentions that the business model of the Montérégie mega-factory is “very interesting” for the young company that has been in existence for eight years. North America is a new market to conquer where there is a “growing interest in electrification,” he says.
Nevertheless, the postponement of the schedule for its project in Quebec is one of the options considered in the strategic review, the conclusions of which should be known in September, confirms Mr. Therrien.
PHOTO MARTIN TREMBLAY, LA PRESSE ARCHIVES
The Northvolt site in Montérégie.
According to him, the exercise currently being carried out proves the seriousness of the organization, which takes note of the “slower than anticipated ramp-up” of its first factory in Sweden.
“It’s healthy at a certain point to come and ask yourself if our priorities are well aligned, if our pace of execution is the right one,” he maintains, also noting that the manufacturer launched expansion projects in Germany and Canada almost simultaneously.
“Does the pace of execution allow us to swallow these bites intelligently, in a structured way, in order to succeed in these projects? Ultimately, the objective is for them to be successes,” he added.
During the strategic review, Northvolt is continuing its hiring in Quebec. The company has just under 150 employees there to date. Most of the hires are for engineering positions, particularly to plan the construction of the plant, Mr. Therrien mentioned.
Excavation work
The mega-factory project on the South Shore of Montreal, between Saint-Basile-le-Grand and McMasterville, is expected to cost $7 billion.
Excavation work is underway on the site, Mr. Therrien said. A first building dedicated to cell production must first emerge from the ground. According to the current schedule, the start of production is planned for 2026.
Northvolt also plans to build a cathode active materials plant and a recycling plant, which must be assessed by the Bureau d’audiences publiques sur l’environnement.