Trump's election could harm Northvolt

The future isn’t looking too bright for the Swedish manufacturer Northvolt, a company the Mohawk Council of Kahnawake (MCK) is in litigation against over its alleged refusal to consult them over the ongoing construction of an electric car battery plant in the Monteregie.

Both the federal and Quebec governments shared with Radio-Canada this month they intend to pull production subsidies to the company in the instance Donald Trump’s government does so as well.

The newly-elected US president ran on a promise to pull production subsidies to the electric car battery industry by doing away with the Inflation Reduction Act (IRA), a climate and tax deal that’s existed since 2022 to provide subsidies to green businesses.

In comments to Radio-Canada, officials for Quebec and Canada confirmed their funding commitments are conditional on American subsidies to the company through the deal. The news outlet estimates Northvolt stands to lose roughly $3.1 billion in funding in the instance those Quebec and Canadian production subsidies are indeed cut.

“Whatever comes, I’m hoping it ends up in a beneficial way to what our concerns are,” Council chief Ross Montour said. “The problem at this point is that whatever has been done is done.”

The MCK filed its lawsuit against Northvolt at Quebec Superior Court earlier this year. It also targets the federal and provincial governments.

Both governments failed to consult Kahnawake before approving the construction of the battery plant on their traditional land, the lawsuit alleges. Roughly 14 hectares of wetlands were approved for destruction to make way for it.

Construction for the battery plant has already begun at the site between Saint-Basile-le-Grand and McMasterville, but has since been delayed because of financial hardship the company is facing amid a decline in global demand for electric car batteries.

“We’re going on a site visit tomorrow to see the extent of what’s already been done,” Montour told The Eastern Door on Thursday.

The MCK’s lawsuit is set to be resolved through case management hearings at Quebec Superior Court, which have yet to be held.

Officials from Quebec’s Indigenous affairs ministry and its environmental ministry have been urging the band council to meet with Paolo Cerruti, CEO of Northvolt’s North American branch. They’ve turned down that invitation, however, MCK grand chief Cody Diabo said.

“It’s difficult, you know, we’re in active litigation with them,” he said.

He said the topic of Northvolt came up again during his virtual meeting last week with premier François Legault and Indigenous affairs minister Ian Lafrenière, and that he again declined to discuss it with them.

“I just always reference, this is why we need to sign the memorandum of understanding, so we’re able to have these conversations,” Diabo told The Eastern Door.

The proposed document lays out in clear terms how the band council hopes to form a collaborative and productive working relationship with Quebec moving forward, but it’s yet to be finalized and signed.

“We need to be able to pick up the phone and have conversation with each other and not go radio silent for months or weeks, because then it leaves us no choice but to take actions like this,” the MCK grand chief said.

The Eastern Door reached out to the CEO of Northvolt’s North American branch for comment, but didn’t hear back by deadline.

[email protected]