According to a report from Quebec newspaper La Presse, Northvolt is slowing the construction of its Canadian battery factory. This large battery plant located on the South Shore of Montreal, Quebec was initially scheduled to start production in 2026 but is now confirmed to potentially face a delay of up to 18 months, pushing the timeline to 2028.
Sources stated this company will make a final confirmation on the production timeline for the Canadian factory following a strategic review, which is expected to conclude this fall. In a brief statement to the media, Northvolt mentioned it is currently reassessing the timeline for the Canadian factory, but site preparation work still continues, with ongoing engineering and design of the complex.
On September 28, 2023, Northvolt announced a $7 billion Cdn. (approximately $5.18 billion US) investment to build its sixth battery factory in Canada, covering 170 hectares. Construction was set to begin by the end of 2023, with an initial capacity of 30 GWh per year and production planned to start in 2026. The second phase aims to expand capacity to 60 GWh per year. In addition to battery production, the company also plans to build an active cathode material plant and a recycling facility near eastern Montreal. To attract Northvolt, both the governments of Quebec and Ottawa agreed to provide government subsidies similar to the IRA, offering up to $4.6 billion (US) in funding support after the battery plant becomes operational.
However, prolonged site preparation and leveling time, as well as complex environmental approvals, have delayed the project. Additionally, the slowdown in the electric vehicle market is a major reason for Northvolt’s adjustment of the factory’s production schedule. Recent global slowdowns in the electric vehicle market have led major EV manufacturers and battery suppliers in Europe and the US, such as GM and Ford, to reevaluate their strategies and delay production schedules. In July of this year, co-founder and CEO Peter Carlsson admitted in an interview with Swedish media that the company’s battery production expansion plans have been overly ambitious and they were currently reassessing the expansion strategy.
Source: WeChat Official Account—鑫椤锂电
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