Swedish Battery Maker Northvolt Slows C$7 Billion Canadian Project
Swedish battery maker Northvolt is adjusting its expansion strategy, including plans for its C$7 billion facility in Canada. The company announced a review of its spending and potential job cuts, prompting a slowdown in the development of its Montreal plant.
Despite the strategic recalibration, Northvolt North America’s CEO Paolo Cerutti confirmed that construction and hiring will proceed at the Canadian site, albeit at a reduced pace. The company expects to release more details about the project’s timeline in the near future.
“There are no job cuts in Canada and we continue to hire for the jobs opened on our website,” he said in an email to Reuters.
This shift comes amid broader challenges in the electric vehicle (EV) industry, where demand growth has not met expectations. Consequently, several companies in the sector have been forced to reassess their investments.
Northvolt’s Canadian venture, initially set to commence operations in 2026, has garnered substantial support from both public and private sectors. The federal and Quebec governments each pledged C$1 billion, while various Canadian pension funds and investment firms collectively contributed an additional C$1.1 billion.
The development occurs against the backdrop of Canada’s ambitious EV manufacturing strategy, spearheaded by Prime Minister Justin Trudeau’s administration. The government has committed significant resources to attract and support battery and EV producers, offering substantial incentives and production credits.
However, Northvolt’s reconsideration of its expansion plans reflects a wider trend in the industry. Recent reports indicate that EV-related investments totaling approximately C$46 billion have been either canceled or postponed across the sector.
Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
