Battery sector | A door open to the CDPQ, despite the collapse of Northvolt

The door remains open for the Quebec Quebec Caisse du Caisse de Québec (CDPQ) Caisse (CDPQ) despite the collapse of Northvolt, which made it lose $ 200 million. However, the institution risks opting for moderation the next time it will untie the stock market cords.

Posted at 8:01 p.m.

“Committing to China is a big job, that’s a Takeaway, a conclusion,” analyzed the president and chief executive officer at the Lower Quebecers, Charles Emond, Tuesday, as part of the study of budgetary credits, in Quebec.

Northvolt embodied one of the Western hopes in the batteries niche to compete with the Middle Empire, which dominates the market. The objective, combined with a 7 billion mega-user project on the Montreal South Shore, had prompted the CDPQ to lend 200 million to this young shoot.

We know the rest. Diving in a liquidity crisis last fall due to important production problems, the mother company of the Swedish manufacturer – Northvolt AB – found itself out of its creditors to turn to bankruptcy last March. It also made the Legault government lose 270 million.

Even if the episode of Northvolt ended in a fishtail for the cash register, the pension plan manager does not intend to turn his back, for all that to the Quebec ecosystem, which is no exception to the global slowdown.

“I would tell you that the battery sector, we will continue to look at any project in Quebec which will meet our criteria of performance, risk, and any project that can help an energy transition,” said Kim Thomassin, vice-president and responsible for Quebec from the fund.

Alongside Mr. Emond, she answered a question from the official opposition spokesperson for economics, Frédéric Beauchemin. M^me Thomassin, however, did not offer examples where the cash register could rise on a project.

Steep slope

Meanwhile, the fate of the Quebec megaprojet of Northvolt, which must ride Saint-Basile-le-Grand and McMasterville, is more nebulous than ever. The work is always stopped. It is the process led by a bankruptcy trustee that will determine the rest of things.

Can we hope that the Montérégie project can eventually work? Mr. Emond’s response to the Liberal MP illustrated how steep the slope is.

“We don’t have enough data,” said the president of the fund. The question is very theoretical and the context has also changed demand for electric vehicles. You can have the right technology, but the whole sector is in another environment compared to two years ago. »»

A foundation that melts

Questioned by Mr. Beauchemin, the big boss of the CDPQ was also forced to confirm how important investment in Azure Power Global, an Indian solar energy producer controlled by the fund, had depreciated.

This company has received more than 600 million from the Quebec institution since 2016. Because it was shaken by allegations of corruption, its accounting value melted at 100 million, according to Emond.

However, the Azure shares block held by the cash register is only 36 million. These titles are negotiated on the market outside the rating, since the company was ejected from the New York Stock Exchange.