Northvolt Batteries North America Inc. et al., CCAA

Northvolt Batteries North America Inc. et al., the North American branch of battery maker Northvolt, was placed under CCAA protection on September 5 on application by Investissement Québec, an agency of the Québec Government, owed over $260 million.

In 2023, Northvolt announced plans to build a $7 billion EV “gigafactory” in the Montérégie region of Québec, bringing 3,000 jobs to the area. The project was supported by the Québec Government, which invested $240 million into Northvolt. The Government also invested $270 million into Northvolt’s Swedish parent company, which it lost after the parent declared bankruptcy in March of this year.

In April, the Québec Government agreed to give Northvolt more time to find a buyer or investor, but no binding offers were received by the September 1 deadline. As a result, on September 2, the Government announced that it would be pulling funding for the plant, prompting Northvolt to lay off its entire workforce. On the same day, the Government withdrew $198 million from Northvolt’s bank account to reduce its $260 million debt.

$15 million was left in the account to finance the CCAA proceedings, the purpose of which is to launch a fresh sale process for the company’s assets, including the 170-hectare site on which the factory was to be constructed.

Raymond Chabot is the monitor.

Counsel is McCarthy Tétrault for IQ and Blakes for the monitor.