Northvolt, a Swedish battery producer with plans to construct a $7 billion manufacturing unit in Quebec, has declared chapter in Sweden.
The corporate mentioned in a media launch that the choice to declare chapter got here after “an intensive effort to discover all out there measures to make sure the corporate’s viable monetary and operational future.”
“In latest months, Northvolt has skilled a collection of compounding challenges eroding monetary place, together with rising capital prices, geopolitical instability, subsequent disruptions in provide chains, and altering market demand,” the discharge states.
The corporate says its North American enterprise is a solvent.
The court-appointed trustee will now decide the way forward for Northvolt’s enterprise and property, together with expertise and manufacturing amenities, the corporate mentioned.
It was not instantly clear how the corporate’s chapter would have an effect on the way forward for an enormous $7 billion electrical automotive manufacturing unit within the Montelegie space on Montreal’s South Shore.
In 2023, the Quebec authorities pledged $2.9 billion in funding to safe transactions North Bolt. Ottawa has earned as much as $1.34 billion price of incentives price $3 billion to construct the manufacturing unit.
up to now, Quebec authorities invested $270 million Within the challenge State pension traders, Caissed Important Placement duQuébec (CDPQ) has additionally invested $200 million.
Quebec Financial Minister Christine Frechette mentioned in a put up on X that the federal government was dissatisfied with the state of affairs however is evaluating their choices. She beforehand mentioned Northvolt’s chapter submitting wouldn’t have an effect on Quebec’s battery plant.
“Our want is for the controller to take over all of the actions in North America and begin searching for consumers to put money into rebooting the Montelegie challenge,” she writes.
Regardless of the chapter of Northvolt’s guardian firm in Sweden, Northvolt, a subsidiary of a Swedish firm, Northvolt, North America, the media launch said that it stays a solvent, respects its obligations and intends to fulfill its monetary commitments.
The Swedish authorities has proven that it might probably intervene to assist the corporate.
