MONTREAL — Quebec pension fund Caisse de depot et placement du Quebec (CDPQ) has announced it is investing $200 million in Northvolt AB, which is building a lithium-ion battery plant near Montreal.
The $7-billion plant at Saint-Basile-le-Grand and McMasterville will be the first North American facility for the Swedish firm.
Groundwork for the construction of the Northvolt Six facility is expected to start by the end of 2023 and commissioning is expected in 2026. The factory will have an annual production capacity of up to 60 GWh, with facilities to manufacture cathode active material, cells and recycled materials, representing the full battery loop, stated a release.
The financing is in the form of convertible debt in the parent company.
Northvolt operates Europe’s first homegrown gigafactory in Sweden and is currently developing other projects to expand in Europe.
“The battery value chain is a high-interest sector for CDPQ, and with a favourable impact on the energy transition, we believe it will experience strong growth over the next decade, which we expect will benefit our depositors,” said CDPQ executive vice-president Kim Thomassin in a statement. “This sector is promising for Quebec’s economic development and we want to contribute to that.”