All along the electric vehicle supply chain, from mining to processing critical minerals, through building batteries, Quebec is attracting historic investments from companies all around the world. These investments are growing the economy and creating well-paying middle-class jobs for today and for decades to come.
The Prime Minister of Canada, Justin Trudeau, was joined today by the Premier of Quebec, François Legault, to welcome a new electric vehicle battery manufacturing facility to be built by Northvolt Batteries North America in Saint-Basile-le-Grand and McMasterville, Quebec. Powered by clean electricity, the batteries produced will be among the greenest batteries in the world. Once fully operational, the plant will generate economic benefits equal to the value of the production incentives provided, within five to nine years. This plant will support tens of thousands of jobs across the country and contribute up to $1.6 billion to GDP annually when it is at full capacity.
Occupying an area equivalent to 318 football fields, the Northvolt project will have an annual battery cell manufacturing capacity of up to 60 GWh, which is enough to power approximately one million electric vehicles per year. The first 30-GWh phase of the project, valued at $7 billion in total investment, will create up to 3,000 jobs in the region as the plant reaches its full production potential. This first phase will also include adjacent facilities for cathode active material production and battery recycling. This will make it the only fully integrated facility of this type in Canada, and one of the only ones in the world.
These types of investments in our electric vehicle supply chain are a historic vote of confidence in Quebec from global automakers. They continue to put Quebec, and Canada, at the forefront of electric vehicle manufacturing, as we work to build a strong, competitive economy, create good middle-class jobs now and into the future, and fight climate change.
Quotes
“Once again, with Northvolt’s new facility, the world is choosing Quebec and Quebec workers. When electric vehicle batteries are made in Quebec, it’s a win-win-win—for workers, for communities, and for the environment. We’ll always keep doing our part to make sure global companies and automakers can keep setting up shop in Quebec. Because that’s how we continue to build a strong economy with good middle-class jobs and clean air for generations to come.”
“I am very proud to announce the largest private investment in Quebec’s recent history: a structuring project by Northvolt with a total value of $7 billion. Quebec is in the process of setting up all the components needed for its battery manufacturing sector, from mining to recycling. We are not simply going to export our natural resources as we did in the past—we are going to process them here. Our vision is beginning to take shape: Québec has become a world leader for the green economy.”
“Today’s announcement is more than just a battery cell manufacturing project; it is the culmination of our desire to attract the world’s biggest players so that we’re not only ready for tomorrow’s economy, but we’re making Quebec and Canada the green suppliers of choice. Northvolt’s decision to pick Quebec to establish their project, amongst more than 70 sites, is a strong vote of confidence in the EV ecosystem we are currently building in Quebec, and all around Canada, and in our skilled workers. It also speaks volumes of our country’s competitiveness when it comes to attracting major investments. Our government looks forward to working together with Quebec and Northvolt toward a cleaner, more sustainable and resilient economy.”
“Northvolt is the biggest private project in Quebec’s history. It will provide an opportunity to process some of our natural resources here, in Quebec, before exporting them with significant added value. This announcement adds the final piece to a strategic industrial sector that will transform Quebec’s economy. We can be proud of producing the world’s greenest batteries. This is a great day for our economy and for Quebec as a whole.”
“We established Northvolt with a clear vision to pioneer a sustainable model for the battery industry. Today, we begin an exciting new chapter for the company by establishing a foundation for North American operations in Canada from which to deliver solutions to accelerate the decarbonization of society.”
“The demand for battery solutions is growing, but so is the need for sustainable manufacturing and circularity within society. With access to clean energy, raw materials and world-class talent, Canada represents a natural base from which to support North American markets with sustainable, market-leading battery solutions. We are tremendously excited to begin exploring opportunities together with customers, suppliers, and local communities to make this a true success.”
Quick Facts
- Today’s announcement builds on important agreements that Canada has signed over the last year to bring billions in investments and a large number of new, high-quality jobs to our critical minerals and electric vehicle manufacturing sectors. This follows important investments already made in the Canada and Quebec battery supply chain with Volta Energy Solutions Canada, EcoPro CAM Canada and GM-POSCO.
- Canada and Quebec have committed to providing Northvolt with production support to match the Inflation Reduction Act’s Advanced Manufacturing Production Credit in the United States, equalling up to US$35 per kWh.
- Government production incentives will apply only to the batteries that Northvolt produces and sells, in line with the conditions in previous agreements with other battery plants. They will be up to C$4.6 billion, of which one third is to be paid by the Quebec government.
- The operating support provided will only be available for as long as the U.S. Inflation Reduction Act incentives remain in effect.
- Canada will provide up to C$1.34 billion in capital commitment toward the project.
- Quebec will provide C$1.37 billion in capital commitment toward the project.
- Northvolt’s facility will focus on sustainability and will produce a variety of battery components and materials, such as precursor cathode active materials (pCAM), cathode active materials (CAM), lithium-ion battery cells, and lithium-nickel-manganese-cobalt-oxide (NMC) from battery recycling, one of only a handful of locations to have this type of capacity outside of Asia.
- By 2030, Northvolt’s unique decarbonization strategy aims to reduce the carbon footprint of its cell manufacturing by approximately 90% compared to the current industry average. The company also intends to use at least 50% recycled materials in its cell production. By recovering quality metals from used batteries, Northvolt will help to ensure that Canadian critical raw materials remain in circulation.
- Canada’s automotive manufacturing sector supports over 500,000 workers, contributes $14 billion annually to Canada’s GDP, and is one of the country’s largest export industries.
- In December 2022, the Government of Canada released the Canadian Critical Minerals Strategy to help advance the development of critical mineral resources and value chains across the country. This strategy will advance our efforts to make Canada a global leader in the responsible, inclusive, and sustainable production of critical minerals, from exploration to recycling.