No project, no funds, says Legault about Northvolt

Photo: Jacques Boissinot The Canadian Press Quebec Premier François Legault was questioned Tuesday about the repayment guarantees negotiated by his government in the event that the Northvolt mega-factory project in Montérégie does not take place.

“If there is no project, we are not going to […] spend [any funds],” Premier François Legault said Tuesday about the Northvolt mega-factory in Montérégie.

The day after an announcement about the Swedish company’s difficulties, the CAQ leader was asked about the repayment guarantees negotiated by his government. “Do you have a clause in the contract that guarantees that public funds will be repatriated if the project does not take place?” asked Parti Québécois (PQ) leader Paul St-Pierre Plamondon during question period.

The premier stated that Quebec had so far paid $240 million for the land where the industrial complex will be located. “The other amounts that will be paid are based on construction costs [and] on production. Nothing has been paid out yet.” So, if there is no project, we will not pay them,” he said.

To set up its mega-factory, Northvolt can count on $1.37 billion in aid from Quebec and $1.34 billion from Ottawa. In response to the American Inflation Reduction Act, the two levels of government have also provided $4.6 billion in “production incentives” — a third of which would be paid by the Quebec government.

The Legault government has already allocated $22 million in public funds for the development of a “temporary access road” for the construction of the factory. Northvolt has also received $200 million in financial support from Investissement Québec for “the financing of preliminary activities.”

On Monday, Northvolt announced its intention to reduce its operations worldwide and cut jobs. The planned industrial megaproject in Montérégie is still in the pipeline, but it will be delivered with a minimum delay of 12 to 18 months. “We are continuing the construction of the cell assembly building as well as the design of the Revolt plant [dedicated to battery recycling] and the cathode manufacturing buildings,” Northvolt wrote to Devoir.

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The brand-new Minister of Economy, Innovation and Energy, Christine Fréchette, said Tuesday that she had spoken with Northvolt executives on the sidelines of their announcement. “They reassured me that this project, which will be held in Quebec, will continue.” We remain to be seen how the strategic review will be deployed, but the very nature of the project will be maintained,” she declared at the Salon Rouge, where energy issues dominated the discussions.

A motivated party and a “worn out” one

At the start of the parliamentary session, the opposition parties also took advantage of statements by former resigning minister Pierre Fitzgibbon — who said his motivation was “waning” — to describe the CAQ government as “worn out” and “disorganized.”

“I can’t believe that we can have both hands on the helm of such a strategic reform and be demotivated,” said Québec solidaire co-spokesperson Gabriel Nadeau-Dubois. “I think it shows that this entire government is worn out, that it has lost its bearings. After six years, it sees that its education and health reforms are not bearing fruit, that the daily lives of Quebecers have not improved.”

Motivated by the polls, the PQ leader is preparing for his transition with a view to taking power in 2026. “What we most criticize about the CAQ [Coalition avenir Québec] and politicians in general is the lack of transparency and the lack of preparation. We are serious, and our goal is to form the government in 2026. So yes, we are preparing. And I am not ashamed of that,” said Mr. St-Pierre Plamondon. Le Journal de Québec reported last week that the PQ leader has begun to solicit former employees of the Lévesque, Parizeau and Marois firms to gauge their interest in working in a Plamondon government.

The PQ has also decided to postpone the submission of its plan detailing its vision for immigration in order to devote itself “entirely” to the by-election in Terrebonne caused by the resignation of Pierre Fitzgibbon. The plan was initially scheduled to be presented in the spring of 2024. It is intended as a response to the “Initiative of the Century,” a proposal from a pressure group that aims to radically raise immigration thresholds and increase the Canadian population to 100 million people by 2100. “It’s a very voluminous document. It will take place this fall,” nevertheless assured the PQ leader.