Quebec’s pension fund manager is investing $200 million in Swedish company Northvolt AB which announced plans in September to build a factory for electric vehicle batteries near Montreal.
The investment by the Caisse de dépôt et placement du Québec will be in the form of convertible debt in the company.
Construction of Northvolt’s $7-billion plant in McMasterville and Saint-Basile-le-Grand, Que., is expected to start by the end of this year.
It is expected to have 30 gigawatt hours of annual cell manufacturing capacity when the first phase goes into production in 2026 with the ability to later double that figure.
The site will also include facilities for cathode active material production and battery recycling.
Kim Thomassin, executive vice-president and head of Quebec at CDPQ, says the battery industry is a sector of high interest for the fund as it believes it will experience strong growth over the next decade.