Will they or won’t they? Or more accurately, ‘easy come, or easy go’.Swedish battery maker Northvolt is sending mixed messages on plans to build a heavily subsidized EV battery factory near Montreal amid conflicting statements over its international expansion plans in the European press.Initially the company said it is launching a ‘strategic review’ to refocus international operations to retrench back to Sweden.This wasn’t ‘insider’ speculation, but rather public statements from co-founder and CEO Peter Carlsson himself..“We were a little too aggressive with our expansion plan, and we are now reviewing this.” Peter Carlsson.In an interview with the Swedish business newspaper Dagens Industri, Carlsson said: “We were a little too aggressive with our expansion plan, and we are now reviewing this.” A Northvolt spokesperson later confirmed to several media outlets: “Northvolt is currently evaluating the timing of the further ramp-up of production at its factories. The focus is on supplying customers from the first Northvolt Gigafactory site in Skellefteå (in Sweden).”Although it primarily affects planned ‘gigafactories’ in Germany — Northvolt is the leading supplier to both BMW and Volkswagen — it’s unclear how the review would affect plans to build a $7 billion plant on Montreal’s South Shore.In September the Quebec government ponied up $2.9 billion while Ottawa chipped in another $1.34 billion to build the plant along with $3 billion worth of other incentives.Once completed in 2026 it is expected to produce 56,000 tonnes of batteries per year.Not coincidentally, Volkswagen received $13.2 billion in subsidies to build an Ontario factory — presumably using parts from Northvolt — in March of last year..“(We are) aware of the recent developments and will continue to work with all partners to foster a strong and sustainable EV sector in Canada."Industry Minister François-Philippe Champagne.In a statement Tuesday, Northvolt said the review will determine project timelines for the German and Canadian factories, but said it is too soon to say what impact it could have on the plant in Quebec."Our commitment and intentions are unchanged: to play a central role in Quebec's energy transition by manufacturing the greenest batteries in the world," it said.Nonetheless, Quebec and federal politicians were scrambling to provide reassurances that the project will indeed proceed.Federal Industry Minister François-Philippe Champagne said Tuesday the minister is "aware of the recent developments and will continue to work with all partners to foster a strong and sustainable EV sector in Canada.".Meanwhile, Reuters reported on Tuesday that the Investment Management Corporation of Ontario had sunk $400 million of pension funds into the troubled battery maker ahead of an expected initial public offering of the company’s shares.The purchase of convertible notes is its single largest European investment to date. Convertible notes are debt that can convert to equity on pre-agreed terms as other funding sources dry up. Reuters noted they also allow private companies to avoid being explicit about their equity value."Northvolt really fits with a lot of the trends we are trying to invest in," Rossitsa Stoyanova, IMCO's Chief Investment Officer, said in an interview, invoking the usual boilerplate Energy transition theme and the restructuring of global supply chains."Whether it (Northvolt) goes public or stays private, we've done our homework and we are happy with the investment."
Will they or won’t they? Or more accurately, ‘easy come, or easy go’.Swedish battery maker Northvolt is sending mixed messages on plans to build a heavily subsidized EV battery factory near Montreal amid conflicting statements over its international expansion plans in the European press.Initially the company said it is launching a ‘strategic review’ to refocus international operations to retrench back to Sweden.This wasn’t ‘insider’ speculation, but rather public statements from co-founder and CEO Peter Carlsson himself..“We were a little too aggressive with our expansion plan, and we are now reviewing this.” Peter Carlsson.In an interview with the Swedish business newspaper Dagens Industri, Carlsson said: “We were a little too aggressive with our expansion plan, and we are now reviewing this.” A Northvolt spokesperson later confirmed to several media outlets: “Northvolt is currently evaluating the timing of the further ramp-up of production at its factories. The focus is on supplying customers from the first Northvolt Gigafactory site in Skellefteå (in Sweden).”Although it primarily affects planned ‘gigafactories’ in Germany — Northvolt is the leading supplier to both BMW and Volkswagen — it’s unclear how the review would affect plans to build a $7 billion plant on Montreal’s South Shore.In September the Quebec government ponied up $2.9 billion while Ottawa chipped in another $1.34 billion to build the plant along with $3 billion worth of other incentives.Once completed in 2026 it is expected to produce 56,000 tonnes of batteries per year.Not coincidentally, Volkswagen received $13.2 billion in subsidies to build an Ontario factory — presumably using parts from Northvolt — in March of last year..“(We are) aware of the recent developments and will continue to work with all partners to foster a strong and sustainable EV sector in Canada."Industry Minister François-Philippe Champagne.In a statement Tuesday, Northvolt said the review will determine project timelines for the German and Canadian factories, but said it is too soon to say what impact it could have on the plant in Quebec."Our commitment and intentions are unchanged: to play a central role in Quebec's energy transition by manufacturing the greenest batteries in the world," it said.Nonetheless, Quebec and federal politicians were scrambling to provide reassurances that the project will indeed proceed.Federal Industry Minister François-Philippe Champagne said Tuesday the minister is "aware of the recent developments and will continue to work with all partners to foster a strong and sustainable EV sector in Canada.".Meanwhile, Reuters reported on Tuesday that the Investment Management Corporation of Ontario had sunk $400 million of pension funds into the troubled battery maker ahead of an expected initial public offering of the company’s shares.The purchase of convertible notes is its single largest European investment to date. Convertible notes are debt that can convert to equity on pre-agreed terms as other funding sources dry up. Reuters noted they also allow private companies to avoid being explicit about their equity value."Northvolt really fits with a lot of the trends we are trying to invest in," Rossitsa Stoyanova, IMCO's Chief Investment Officer, said in an interview, invoking the usual boilerplate Energy transition theme and the restructuring of global supply chains."Whether it (Northvolt) goes public or stays private, we've done our homework and we are happy with the investment."
