The electric vehicle revolution continues gaining momentum as automakers transition from gas to electric. A key battleground is battery production, with nations vying to host plants supplying this crucial EV component. Canada just scored a major win in this high-stakes arena.
Swedish battery maker Northvolt announced its first North American facility will be built in Quebec. The Canadian province beat out competition from the U.S. south to land the $4.1 billion battery gigafactory.
Securing a domestic battery supply chain is pivotal for Canada’s EV aspirations. Currently the country lacks large-scale battery production. This new Quebec plant will help change that when its first phase opens in 2025.
Billions in Batteries
Northvolt’s gigafactory near Montreal will aim to produce enough batteries annually to power hundreds of thousands of EVs. The company stated its choice of Quebec was driven by the province’s low-carbon hydropower and highly skilled workforce.
Quebec offered a $120 million dollar incentive package to entice the company. The province is fast emerging as a hub for battery innovation, also landing projects from GM-POSCO, Stromvolt, and BritishVolt.
Political Support
The Northvolt announcement drew enthusiasm from leaders in Ottawa and Quebec City. Prime Minister Justin Trudeau called it “a major win” that will strengthen Canada’s battery supply chain. Quebec Premier François Legault touted the thousands of jobs and economic benefits.
Both touted the alignment with their net-zero emission targets. Producing more batteries locally shrinks their carbon footprint versus overseas imports. And EVs powered by Quebec’s hydro electric grids offer huge climate advantages over gas vehicles.
An Electric Future
Transport accounts for 25% of Canada’s carbon emissions, making it a prime target for green transition. The federal government mandated all new cars sold be electric by 2035. But fulfilling this vision relies on batteries.
Northvolt’s commitment signals Canada is getting seriously about building a robust domestic battery sector. As demand grows in coming years, companies want suppliers close by. This new gigafactory helps position Canada for the electric future ahead.
The stakes in the global battery race are enormous, with production capacity needing to increase tenfold by 2030. That Canada now lands firmly in this race is promising. Because our electric hopes ride on the batteries these plants can churn out.