Northvolt to build $5 billion battery gigafactory near Montreal

Northvolt unveiled plans for Northvolt Six, a fully integrated 60 GWh lithium-ion gigafactory near Montreal requiring $5 billion USD for its first phase. The project highlights how renewable-powered, circular battery manufacturing is becoming a competitive benchmark relevant to India's emerging gigafactory and EV supply ambitions.

Northvolt will build Northvolt Six, a fully integrated lithium-ion gigafactory outside Montreal in Quebec, with annual capacity of 60 GWh plus adjacent cathode active material production and battery recycling for a circular on-site process. Construction of the initial 30 GWh phase begins by end of 2023, with first operations expected in 2026. The first phase requires $5 billion USD ($7 billion CAD) and up to 3,000 jobs, supported by Canada and Quebec as the largest private investment in Quebec's history.

The project affects automakers and battery customers including BMW, Fluence, Scania, Volvo Cars, and Volkswagen Group, from whom Northvolt has secured $55 billion in orders. The 170-hectare site in McMasterville and Saint-Basile-le-Grand uses Quebec's hydroelectric power to run cell production on 100% renewable energy. Northvolt, founded in 2016 in Stockholm, already delivers batteries from Northvolt Ett in Skellefteå and employs over 5,000 people across Sweden, Germany, Norway, Poland, Portugal, the United States, and Canada.

Battery manufacturers and EV value chain participants should monitor the construction timeline, with the 30 GWh first phase starting late 2023 and operations from 2026. The integrated cathode, cell, and recycling model powered entirely by renewable energy sets a benchmark for sustainable battery production within the North American automotive value chain. Companies evaluating localisation of battery supply chains can watch how renewable power access and circular recycling shape competitiveness in the energy transition.

Key figure — First-phase investment: $5 billion USD ($7 billion CAD) for 30 GWh