Northvolt AB, the giant Swedish battery developer, is planning to build a new multibillion-dollar electric vehicle (EV) battery plant in Quebec, top Canadian officials announced on Thursday.
It will be Northvolt's first mega-factory outside of Europe and will be built about 30 kilometres east of Montreal.
"This facility will be able to produce batteries for a million electric vehicles a year and, at full production capacity, the plant will contribute up to $1.6 billion to our economy," Canadian Prime Minister Justin Trudeau said.
The first phase of the project, with an investment value of $7 billion, will have an annual battery cell manufacturing capacity of up to 30 gigawatts per hour (GWh) and will create as many as 3,000 jobs in the region as the plant reaches its full production potential, CBC News reported.
No timeline was provided for the second phase of the project, which is expected to double production.
Canada’s federal government and the provincial government of Quebec will invest a total of $2.7 billion for the construction of the factory, which is expected to be completed by the end of 2026.
Northvolt will also be eligible for government production incentives up to $4.6 billion, of which one-third will be paid by the Quebec government.
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