Northvolt Confirms Moving Forward in Quebec, Despite U.S. Bankruptcy Filing
Electric vehicle battery maker Northvolt recently filed for bankruptcy protection in the United States. Obviously, this made a lot of waves in Quebec, where the company is to build a plant backed by major investments.
The company this week took pains to clarify that its U.S. process does not jeopardize the project for the Quebec plant project. That project has received hundreds of millions of taxpayer dollars, so many are naturally worried.
Northvolt is partly a victim of a context in which there is a global slowdown in demand for electric vehicles. In fact, it is the anticipated growth that is smaller, which forces everyone to review their objectives.
This is partly why the Swedish company and several of its subsidiaries have applied for a reorganization of their debts and assets under the supervision of a court, under Chapter 11 of the US Bankruptcy Code.
And why wouldn't this impact Canada? Northvolt clarified that its Canadian subsidiary is funded separately and that it "will continue to operate as planned outside of Chapter 11 proceedings."
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