The Quebec government has successfully recouped nearly $200 million from its loan to Northvolt’s North American division, following the frozen bank accounts of the battery manufacturer. This recovery came after Northvolt’s Swedish parent company went bankrupt in March.
In a recent announcement, Quebec stated that it would no longer provide additional funding for the project and is actively seeking the return of a $240-million guaranteed loan that facilitated Northvolt’s acquisition of land for a battery factory in the vicinity of Montreal.
Additionally, the government has initiated legal action by petitioning the Quebec Superior Court to rule on the company’s insolvency and grant authorization for the disposition or reclaiming of the property.
Having already absorbed a loss of a $270-million investment in the parent company, Quebec now faces a remaining debt of $260 million on the loan, inclusive of interest charges.
Initially celebrated as a significant private investment milestone for Quebec, the battery plant project failed to progress beyond preliminary construction stages.
