Swedish battery maker Northvolt has opened a gigafactory building BEV lithium-ion battery cells in Canada.
The company expects to invest $3.2Bn in the project with its first phase of the construction of Northvolt Six factory outside Montreal beginning this year with it becoming operational in 2026, Reuters reports. A further $2Bn will be invested in the scheme by both the local and federal governments, Northvolt co-founder Paolo Cerruti told reporters.
This first phase is claimed to provide 30 gigawatt hours (GWh) of production capacity, before eventually expanding to 60 GWh with investments approaching $9Bn, said Cerruti, who will lead the project as CEO of Northvolt North America. The company already has several European factories and is among a handful of players building a domestic battery industry to fight off the dominance of Asian manufacturers.
It has raised more than $9Bn in debt and equity since 2017 in its bid to become Europe's biggest battery manufacturer, including $1.2Bn last month from investors including Canada Pension Plan and Ontario Municipal Employees Retirement System. Also the $369Bn US Inflation Reduction Act (IRA) passed last year has prompted companies such as Northvolt to look across the Atlantic, attracted by hefty subsidies and cheaper energy.
Ceruti said: “We looked at 70 different sites at the beginning of this process. We were also looking at the United States but eventually Canada made it for the first factory.” He pointed to the availability of sustainable energy, access to skilled workers, proximity to natural resources and other factors such as the attitude of the governments as reasons for the decision.
— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_ and Threads
