Quebec auditor general investigating subsidies to embattled electric battery industry

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QUÉBEC - The office of Quebec's auditor general says it is investigating the millions of dollars in subsidies given by the province to the electric battery industry.

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QUÉBEC – The office of Quebec’s auditor general says it is investigating the millions of dollars in subsidies given by the province to the electric battery industry.

Major players in the sector have come under severe financial difficulties, such as vehicle maker Lion Electric and battery manufacturer Northvolt.

A spokesperson for the auditor general’s office wouldn’t give details on the status of the investigation, only saying a report is expected in the spring.

Signage is seen at the entrance to the Northvolt plant, dubbed Northvolt Six, in Saint-Basile-le-Grande, Que., on Thursday, March 27, 2025. Northvolt AB has filed for bankruptcy protection in the United States, but said the move will not jeopardize the manufacturer's planned electric vehicle battery plant in Quebec — though hundreds of millions of taxpayer dollars invested in the parent company could be lost. THE CANADIAN PRESS/Christinne Muschi
Signage is seen at the entrance to the Northvolt plant, dubbed Northvolt Six, in Saint-Basile-le-Grande, Que., on Thursday, March 27, 2025. Northvolt AB has filed for bankruptcy protection in the United States, but said the move will not jeopardize the manufacturer's planned electric vehicle battery plant in Quebec — though hundreds of millions of taxpayer dollars invested in the parent company could be lost. THE CANADIAN PRESS/Christinne Muschi

The Quebec government gave $270 million to Northvolt’s Swedish parent company before it filed for bankruptcy in Europe. 

Quebec’s pension fund manager — Caisse de dépôt et placement du Québec — invested $200 million in the company.

Meanwhile, Lion electric was recently purchased for a fraction of its former value after it went into bankruptcy protection, with the Quebec government losing its $140-million investment.

This report by The Canadian Press was first published July 29, 2025.

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