Battery manufacturer Northvolt announced plans to build a new gigafactory near Montreal, Canada, with investment in the first phase of the project to begin operations in 2026 anticipated to reach US$5 billion. The project marks Northvolt’s first gigafactory outside of Europe.
Founded in 2016, Sweden-based Northvolt has pioneered a sustainable model for battery manufacturing, with a goal to deliver batteries with an 80% lower carbon footprint than those made using coal-based energy by powering its factories with renewable energy, as well as minimizing resource use and focusing on battery recycling. The company has set a goal for annual cell output of 150 GWh by 2030, and has already received $55 billion in orders from customers including BMW, Fluence, Scania, Volvo Cars and Volkswagen Group.
Peter Carlsson, CEO and Co-Founder of Northvolt, comments said:
“In the seven years since Northvolt was founded, we have pursued a singular goal – to establish a new, sustainable model for battery manufacturing. Today, we are expanding our ambitions by bringing Northvolt to Canada.”
Northvolt said that it selected the 170-hectare site for the new project in Quebec’s McMasterville and Saint-Basile-le-Grand following an extensive review of North American locations, with the site providing hydroelectricity-based power, which will enable cell production from 100% renewable energy, while being ideally located in the North American automotive value chain.
The initial phase of the project, which will include cathode and cell manufacturing, as well as recycling, will reach 30 GWh of cell manufacturing capacity, with the facility ultimately anticipated to host 60 GWh of capacity. The company said that the project is being developed with support from the Governments of Canada and Quebec.
Northvolt Co-Founder Paolo Cerruti will lead the project, and serve as CEO of Northvolt North America.
“We have in Northvolt Six enormous potential, not only to rapidly expand our ability to bring sustainable batteries into markets of North America, but to accelerate Quebec’s emergence as a key actor in the global energy transition. With its unique access to renewable power and raw materials, we see this as the ideal base of operations for Northvolt’s first gigafactory outside of Europe. We look forward to engagement with all local stakeholders and the province, to make Northvolt Six a textbook example of sustainable investment.”