A Quebec court has shut down construction on a massive multi-billion dollar EV plant pending an injunction from a Montreal environmental group.
The Centre Québécois du Droit de L’environnement (CQDE), on Thursday filed the injunction request in Superior Court, calling for the work to stop to protect local wetlands near the Richelieu River in Saint-Basile-le-Grand, about 30 km east of Montreal.
Sweden-based Northvolt said it decided to suspend work on the construction site “out of respect for the ongoing legal process.” Both sides were in court Friday morning, but the hearing was suspended until next week.
In a statement, Northvolt said that its previous projects have respected some of the strictest environmental norms in the world. “And we plan to continue to abide by the environmental rules that are in effect,” it said.
As part of the construction work, Northvolt last week began felling some 10,000 trees after getting approval from Quebec’s environment minister. It says it plans to replant at least 20,000 to make up for the shortfall.
The $7 billion project was announced to much fanfare — and subsidies — last September with promises to create at least 3,000 new jobs. At the time Prime Minister Justin Trudeau called it “historic and transformative.”
According to the Parliamentary Budget Office, the governments of Canada, Ontario and Quebec have ponied up a combined $37.7 billion to support EV manufacturing through 2033, although it says the figure could easily top $50 billion when all is said and done.
Northvolt received $4.6 billion, including $3.1 billion from the federal government and $1.5 billion from the government of Quebec. No timeline has been made for a second phase that would double output.
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