Northvolt's Canadian Battery Factory Construction Slows, Launch Delayed Amid Expansion Challenges

Published: Sep 9, 2024 11:54

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【Construction progress of Northvolt's massive battery factory located on the south shore of Montreal, Canada, has been forced to slow down】. The Northvolt battery factory in Canada, with a total investment of US$5.2 billion, is being built in two phases. Phase I, with an annual production capacity of 30GWh, is scheduled to start production in 2026; Phase II will be of the same scale, targeting a production capacity of 60GWh. The factory was originally slated to commence operations in 2026, but the adjustment may delay its launch by up to 18 months, potentially pushing it back to 2028. Currently, Northvolt only operates one battery factory in Skellefteå, Sweden, yet it has struggled to deliver on time due to low production capacity, resulting in BMW cancelling a €2 billion (approximately RMB 15.7 billion) order. After experiencing a series of setbacks, including decelerating growth in the new energy sector and the cancellation of the €2 billion order by a client, Northvolt is now re-adjusting its expansion plans.

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