(Quebec) The Legault government is threatening Northvolt with withdrawing its energy block after a certain time if the project does not move forward.
The Liberals are criticizing the CAQ for granting a 354-megawatt energy block to the multinational without setting a deadline, while refusing electricity supplies to other Quebec companies that want to decarbonize their processes.
“None of you thought of making an exit clause, to say: if the energy blocks are not used, will we take them back?” denounced Liberal MP Marwah Rizqy during question period.
Solicited from all sides by companies established here who want to decarbonize their processes while there is an electricity shortage, the Legault government, which has always been an ardent supporter of the battery industry and Northvolt, has for the first time threatened to withdraw the energy block guaranteed to Northvolt.
“This granting of megawatts is not eternal, moreover, so we are currently considering for how long these energy blocks are offered and we will decide on this question, namely whether we set a limit and if so, how long is this duration?” declared the new Minister of Energy and Economy, Christine Fréchette.
This statement by the minister comes at a time when the multinational is experiencing financial difficulties, which is raising doubts about the construction of this battery factory in Montérégie.
She added, however, that the company had been reassuring about its rationalization efforts, which it said would not affect the realization of the project in Quebec.
“I had contact a few days ago with the North American director of Northvolt. […] The nature of the project that is planned for Quebec remains, and the project in Quebec remains a priority.
Prime Minister François Legault reiterated his faith in the battery industry in Quebec.
“It’s true that in the short term there is an economic slowdown, but is there anyone here who thinks that in the medium and long term there won’t be more electric vehicles in the world? We, in any case, think so.”
The PLQ is asking the CAQ to grant a block of energy to a company, Forges de Sorel, which wants 16 megawatts. But the CAQ leader says that this company’s project does not go far enough in decarbonization.
“They take the scrap metal and then they make grey steel, we will eventually have to move towards green steel. What are the salaries paid in Quebec? What are the benefits? What are the impacts on decarbonization?”
Recall that last week, Northvolt had to readjust its strategic plan to reduce its costs, focusing solely on the manufacture of battery cells.
The company assures that it is “maintaining its commitments” for the construction of the three other major projects, including the cell factory in Montérégie, but that it will reveal the new schedule later this fall.
The company therefore assures that the Northvolt mega-factory project on the immense land that straddles Saint-Basile-le-Grand and McMasterville is still underway.
The $7 billion project, to which the federal and provincial governments have committed $2.4 billion, initially had three components: the manufacture of cells, cathodes and battery recycling.
Since cathode-related activities are being stopped in Sweden, it would be surprising if this avenue were to be pursued in Quebec. We will have to wait for Northvolt’s announcements in the fall before knowing its intentions regarding this activity as well as the recycling one.