While waiting for work to begin on its mega-factory on the South Shore of Montreal, Northvolt obtains financing from the Caisse de dépôt et placement du Québec (CDPQ), which is positioning itself to eventually become a shareholder of the Swedish battery cell manufacturer .
The 200 million made available to the young company in the form of a convertible loan represent the first major investment made by the nest egg of Quebecers in the niche of the battery sector for electric vehicles.
“We have notably created a working group dedicated to the battery sector and have been in contact with a multitude of important players, both in Quebec and internationally, over the last year,” affirmed the door – Fund spokesperson, Kate Monfette, Thursday, in a statement.
This sum should be used to finance the Northvolt Quebec complex, announced with great fanfare last September, the cost of which is estimated at 7 billion. Quebec and Ottawa will finance nearly 3 billion of the project in addition to subsidizing the future production of battery cells – the last step before the assembly of the batteries – to the tune of 4.6 billion.
The Quebec pension plan manager is already a shareholder in Nouveau Monde Graphite, promoter of a mine and battery materials factory project. At around 2.5 million, the value of this investment is much smaller compared to what was offered to Northvolt.
“CDPQ actively contributed to the arrival of our future factory in Quebec,” underlines the co-founder of the Swedish company, Paolo Cerruti.
Founded in 2015, Northvolt is valued at approximately US$12 billion. To finance its ambitions on both sides of the Atlantic, the young company is considering an IPO next year. This scenario could, for example, offer an opportunity for the Caisse to convert its loan into shares. If this scenario materializes and the stock experiences a surge upon its arrival on the markets, this would work in favor of the investment of the Quebec institution.
By establishing itself on the former site of the Canadian Industries Limited (CIL) explosives factory, which straddles the municipalities of McMasterville and Saint-Basile-le-Grand, Northvolt will add the missing link in the sector Quebec battery industry. The land is 170 hectares in size – approximately 130 football fields.
The first phase of the complex is expected to require nearly 200 megawatts of power, or about half that of an aluminum smelter. In principle, field work should begin by the end of the year. Northvolt wants to move quickly.
In a document prepared by the engineering firm WSP which is intended to complement the ministerial authorization request forms, which La Presse was able to consult, it is indicated that the company expected to begin the phase of “clearing the land, backfilling of wetlands and site preparation” starting in October. However, she is still awaiting authorization.
According to an analysis carried out by Radio-Canada, this is a very short deadline. On average, promoters have to wait 15 months, according to the public broadcaster.
“There is no privilege granted to the company and it collaborates well for each of the requirements,” defended the Minister of the Environment, the Fight against Climate Change, Wildlife and PACS, Benoit Charette, Thursday, on the sidelines of an economic announcement made in Montreal. The regulations are respected and we will hope for the realization of this beautiful project. »
Alongside him, the Minister of Economy, Innovation and Energy, Pierre Fitzgibbon, added that his ministry “does not interfere” in the process.
The 73-page document highlights that the vast land has “returned to a natural appearance with relatively dense vegetation” since the “cessation of industrial activities.” The decontamination phase of the site ended in 2015. Since then, part of the site has been forested, while another is “fallen with vegetation in various stages of succession”.