Northvolt factory in Canada could be delayed until 2028

The plan announced a year ago was for the Canadian Northvolt plant to start production in 2026. At the beginning of July this year, Northvolt then announced that it was reviewing its expansion plans but that it intends to stick with the large cell factory in Canada.

This is still the case, but Quebec’s Minister of the Economy Pierre Fitzgibbon is now expecting a significant delay. “From what I have heard from Northvolt’s management, we are talking about a delay of 12 to 18 months.” On social media he noted the battery industry is slowing down worldwide, saying experts expect a period of stagnation. “This slowdown could apply to Northvolt,” he wrote.

Northvolt has so far only stated in a press release that the strategic review could lead to a reassessment of the timetable but did not specify a timeframe. Nothing has been decided yet, and the results are expected in early autumn this year. “In the meantime, engineering and design of the technology complex are ongoing, and site preparation work continues,” Northvolt said.

When the Northvolt Six battery cell factory was announced, it was stated that construction of the first phase with a capacity of 30 GWh per year would begin in 2023 – with production scheduled to start in 2026. A second construction phase of the same size should target a production capacity of 60 GWh. In addition to cell production itself, a production facility for active cathode material and a recycling plant are also to be built on the site around 25 kilometres east of Montreal.

The US and Canadian governments have attracted numerous electric vehicle projects to their respective countries with funding packages worth billions. With the prospect of billions in subsidies and a growing electric car sales market, companies such as Northvolt and the VW battery subsidiary PowerCo adjusted their plans that had initially been exclusively focused on Europe. In the meantime, electric car sales growth in North America has cooled noticeably, prompting car makers such as Ford and General Motors to trim their battery plans again. The current atmosphere of hedging bets also appears to be mirrored at Northvolt.

Normand Mousseau, scientific director of the Trottier Energy Institute at Polytechnique Montréal, warned the publication CBC of the potential consequences. “If the investments are going forward elsewhere in North America, it means that we are losing competitiveness with respect to other places where battery factories are being built,” Mousseau says, noting that orders would go to plants that are being built. “All delays with respect to other places being developed is bad news in terms of the capacity to compete.”

Northvolt already produces battery cells in Skellefteå, Sweden, but is so behind schedule with the ramp-up of production there that major customer and shareholder BMW has already cancelled an order. Another cell factory is being built in Gothenburg with Volvo. In Germany, Northvolt is known for the construction of the battery factory in Heide (Schleswig-Holstein), the ground-breaking ceremony took place in March 2024.

cbc.ca, lapresse.ca (in French)