Quebec government says it has recovered $200 million from Northvolt loan

The Quebec government says it has recovered nearly $200 million on its loan to the North American branch of battery maker Northvolt.

The money comes from bank accounts belonging to Northvolt that were frozen after its Swedish parent company declared bankruptcy in March.

Quebec announced this week it would provide no more funding for the project and is now trying to recover a $240-million guaranteed loan that allowed Northvolt to purchase land for a battery plant near Montreal.

The government is asking Quebec Superior Court to declare the company insolvent and authorize a process for the sale or repossession of the land.

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Quebec has already lost a $270-million investment in the parent company, and says the debt on the loan is now worth $260 million with interest.

The battery project was once hailed as the largest private investment in Quebec’s history, but construction on the plant never got beyond preparatory stages.

This report by The Canadian Press was first published Sept. 5, 2025.