CDPQ invests in Northvolt

CDPQ announces that it is investing around CAD 200 million (USD 150 million) in Northvolt AB, a leading integrated battery platform focused on the R&D, manufacturing and recycling of sustainable battery cells and systems.

This financing, in the form of convertible debt in the parent company located in Sweden, will contribute to the realization of the Northvolt Six project in Québec announced this fall.

“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 Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. “This sector is promising for Québec’s economic development and we want to contribute to that.”

“CDPQ has been involved in the process for several months, actively contributing in establishing our future plant in Québec. We are delighted to partner with such a major, long-term institutional investor that is committed to Québec’s economic and energy development,” added Paolo Cerruti, Co-Founder of Northvolt and CEO of Northvolt North America. “Northvolt continues to integrate into the economic and social fabric of Québec, and the CDPQ’s investment in Northvolt is further evidence of this.”

With proven technology validated by its customers, who are major sustainable mobility manufacturers, Northvolt operates Europe’s first homegrown gigafactory in Sweden and is currently developing other projects to expand in Europe, in addition to the project announced recently in Québec.

Groundwork for the construction of the Northvolt Six facility—a fully integrated battery factory in Saint-Basile-le-Grand and McMasterville, outside of Montréal—is expected to start by the end of 2023. When fully built, the factory will have an annual production capacity of up to 60 GWh, with facilities to manufacture cathode active material, cells and recycled materials, effectively closing the battery loop on site.