Quebec premier taking heat over $7-billion Northvolt battery plant
CTV
The heat is rising for Quebec Premier François Legault as opposition parties demand answers about his government's investment in the planned Northvolt battery factory near Montreal.
Quebec Premier François Legault is under pressure over his government's investment in a planned battery factory near Montreal, as Swedish manufacturer Northvolt cuts costs following a slowdown in demand for electric vehicles.
Opposition leaders at the Quebec legislature on Tuesday called on the Coalition Avenir Québec government to be more transparent about its agreement with Northvolt for the $7-billion project. They want to know what conditions are attached to the $710 million in public funds the province has already committed.
Legault, who touted the plant as the "greenest electric battery factory in the world" when he announced it one year ago, used more muted language on Tuesday. "When you want to develop, you have to take calculated risks. Otherwise, you don't advance," he said in the national assembly. "We think this is a special opportunity for Quebec."
Normand Mousseau, scientific director of the Trottier energy institute at Polytechnique Montréal, said the Quebec government failed to communicate to the public that the Northvolt deal was inherently uncertain.
"I think the main issue was the fact that the government didn't present this as what it is, which is a risky investment," he said. "It was presented as a done deal."
On Monday, Northvolt announced it is laying off 1,600 employees at its plants in Sweden, totalling one-fifth of its workforce. The company said the cuts have no impact on its plans to build a battery factory in Quebec, a message echoed Tuesday by Quebec Economy Minister Christine Fréchette.
"The project in Quebec remains a priority," she told reporters. "We were aware that this is a new sector. And any new sector has to live with ups and downs. And so we've been careful in order to make sure that the protection of the public money is there."
