This is it: Northvolt has filed for bankruptcy protection. Facilities in Canada and Germany are excluded from this agreement.
So in theory, the factory in Quebec could be part of a restructuring of the company. Is this restructuring feasible? Would it be viable?
Once the company’s debts are cleared, it will in theory be easier to raise new funds. But how long will it take? What advances will competitors, particularly Chinese, take in markets and technological development?
Let’s say that the risk linked to Northvolt, which was already very high, has just increased considerably.
Why this blunder?
Beyond the Northvolt case, a more fundamental question should concern us. Why did the Quebec government make such a blunder?
It is now probable that the Quebec government will lose 500 million in the adventure. Not to mention the opportunity cost, since our leaders bet on the wrong horse.
It is increasingly clear that the agreement with Northvolt was concluded at the top of the government pyramid. Worse, if it is confirmed that other agreements with other companies were on the table and that government reports recommended against this agreement, we will have to conclude either that some of our managers are crass incompetents, or that the contract was was won by corruption.
The first hypothesis seems more likely given the business culture in Sweden.
We could be tempted to make the same diagnosis of incompetence of our elected officials in the face of today’s budget update from the Legault government. A deficit of $11 billion is difficult to justify during a period of economic growth.
Jovialisme
In fact, it seems that the Quebec government, like other governments, is above all a prisoner of a jovial vision of the economy.
However, Quebec is a very aging society. However, international competition is increasing. Yet the United States is becoming more and more protectionist.
It’s not all negative. Quebecers have become one of the most educated populations in the world, climate change could hit less hard than elsewhere, etc.
Practical gains
We should prioritize practical gains and abandon ideological battles.
To do this, we must, among other things, stop worshiping charters of all kinds which, in the end, cost the majority a huge price and harm the development of everyone.
A concrete example of this? Elevators in the metro. Used by a small handful of disabled people, they cost the same as the extension of metro lines. For a fraction of the price, disabled people could benefit from improved adapted transportation.
Likewise, when will we understand that Quebec is short of 12,000 doctors to meet the standards of developed countries and that the multiplication of administrative structures will not change the problem?
