© Reuters.
Swedish company Northvolt has announced plans to establish a $5 billion electric vehicle (EV) battery factory near Montreal, Canada. The move comes after incentives were matched by the Canadian federal and Quebec’s provincial government, a response echoing the U.S. subsidy arms race sparked by President Biden’s Inflation Reduction Act.
The factory, which is expected to employ approximately 3,000 people, will be overseen by Northvolt co-founder and former Tesla (NASDAQ:) executive Paolo Cerruti. The Quebec location was selected due to its abundant hydropower resources and proximity to potential lithium mines.
In addition to manufacturing batteries, the facility will also house a recycling center as part of Northvolt’s commitment to sustainability. This development aligns with the company’s operations in Europe where it supplies batteries to car manufacturers such as BMW (ETR:), Volkswagen (ETR:), and Volvo (OTC:).
The announcement follows a similar move by Volkswagen who recently revealed plans to invest $5 billion in a battery factory in St. Thomas, Ontario. These investments highlight the increasing global emphasis on electric vehicle production and sustainable energy solutions.
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