Swedish lithium-ion battery producer Northvolt has announced it will establish a lithium-ion gigafactory in the Quebec province, just outside of Montreal.

Named Northvolt Six, it is expected to have 60 GWh of annual cell manufacturing capacity with additional facilities for cathode active material production and battery recycling.

The initial phase of cathode and cell manufacturing, along with recycling capabilities will require a total investment of $5 billion (CAD$ 7 billion).

Peter Carlsson, CEO and Co-Founder of Northvolt, said: “In the seven years since Northvolt was founded, we have pursued a singular goal – to establish a new, sustainable model for battery manufacturing. Today, we are expanding our ambitions by bringing Northvolt to Canada.”

Construction of the first 30 GWh phase of the project is due to being before the end of 2023. The first operations are scheduled to start in 2026.

Support from the Government of Canada and the Government of Quebec will represent the largest private investment in Quebec’s history, Northvolt says.

Northvolt Co-Founder Paolo Cerruti will lead the project as CEO of Northvolt North America, which will have its head office in Montreal.

Mr Cerruti said: that Northvolt Six has “unique access” to renewable power and raw materials. “We see this as the ideal base of operations for Northvolt’s first gigafactory outside of Europe. We look forward to engagement with all local stakeholders and the province, to make Northvolt Six a textbook example of sustainable investment.”

Earlier this year Volkswagen Group confirmed that is was planning to build its first overseas battery gigafactory in Canada, located in Ontario. It is expected to produce sustainable unified cells and plans to begin production in 2027. VW said its planned investment was up to CAD$7 billion, with Canada’s federal government providing up to CAD$13.2 billion in manufacturing tax credits, Reuters reported.

Northvolt’s gigafactory will employ up to 3,000 people.