Swedish electric vehicle battery maker Northvolt has signalled possible delays in building its Quebec plant, saying a strategic review has highlighted challenges in the current economic climate.
The company said potential changes to the Canadian project timelines will be confirmed later this fall.
Northvolt is making several adjustments as part of its strategic review. In Sweden, the company will pause work at one of its key production facilities to reduce operating costs. It will also end a project at another site and sell the property, which was initially meant for new cathode active material production. The company will merge its U.S. subsidiary Cuberg with Northvolt Labs in Sweden and transfer its lithium metal technology.
The company cited “a challenging macroeconomic environment” as a reason for changing its operations and resizing its workforce.
In June, Northvolt lost a 2 billion euros (C$2.9 billion) contract with automaker BMW.
Carlsson expressed optimism about the long-term outlook for his company and other cell manufacturers, saying that a global transition toward electrification remains “strong.”
Other electric vehicle (EV) battery projects in Canada have recently faced setbacks, with some attributing these issues to reduced demand.
Umicore’s project in Ontario, initially expected to cost nearly $2.8 billion, received a total of about $976 million in spending commitments from both the federal and provincial governments.
