François Legault agreed with Northvolt “absolutely nothing”.

The prime minister is “hopeful” that the Northvolt plant will get off the ground in Quebec, but he admits “nothing is certain.” The most important thing in its battery field is the “batting average”, argues Francois Legault.

“We have a calculated risk. Absolutely nothing with Northvolt, with Ford or with GM,” Prime Minister Francois Legault told the National Assembly on Thursday morning.

Even as Northvolt's parent company in Sweden suffered financial setbacks, cutting 1,600 jobs earlier in the week, the prime minister “maintains hope that a factory will be built in Quebec.” The Swedish company is restructuring and looking for new investors.

“Northvolt has an exceptional product, with stakeholders like BMW. I believe it will happen, but nothing is certain in economics. I learned that in business and batting average is the most important thing,” he argued.

Francois Legault insists that around twenty companies have decided to set up in Quebec and participate in its battery sector.

“That's one of the approaches we have to have in economics is to diversify our risk,” Mr. Legault stated.

Is Ontario Beneficial?

Furthermore, the Prime Minister believes that Ottawa is in favor of the Ontario government investing in Canada's battery sectors and is neutral with Quebec.

Even though we think Ontario is more populous than Quebec, when I look at the money they put into Stellantis, Volkswagen, we didn't get our share,” the prime minister denied. “We have a share mainly because of Northvolt. This is the part that comes when production starts. But when Ontario has three federally funded plants and we only have one, I find that there is a lack of fairness.

Unlike Quebec, Ottawa still had not paid Northvolt for the construction of the factory in Saint-Basile-le-Grand, Monterrey.

“We have negotiated with the federal government to the best of our ability,” the prime minister said.

Remember that the federal and provincial governments announced $7 billion in investments to convince Northvolt to build the megaproject in Quebec.

Quebecers invested no less than $700 million in the Swedish company, including $240 million for the land purchase, the first $270 million from the government to the parent company and another $200 million from the Caisse de dépôt et share. placement. Another $300 million in equity capital will be paid when Northvolt completes its financing and begins construction of the factory in Quebec.

“In the Northvolt file, it was planned… if the American IRA program [l’Inflation Reduction Act] Northvolt will have $4.6 billion in aid, 2/3 of which will come from Ottawa,” he noted. This aid will only be provided once production begins.