The Quebec government is seeking legal action to declare the North American division of Swedish battery maker Northvolt insolvent, as it aims to recover losses from a failed electric vehicle battery initiative.
Quebec has taken the step of filing a court application in hopes of recovering over $260 million owed by Northvolt Batteries North America, stemming from a government loan that was intended for the purchase of land near Montreal to construct a $7 billion battery facility.
Additionally, the government is looking to access approximately $200 million from frozen accounts linked to Northvolt to offset the outstanding debt. Quebec is also seeking court approval to facilitate the potential sale or reclamation of the property.
Economy Minister Christine Fréchette of Quebec recently declared the discontinuation of the project, citing irreconcilable issues between Northvolt and the government, which are highlighted in the filed court documents detailing the strained relations.
