Setbacks at Northvolt and Lion Électrique, resignation of Pierre Fitzgibbon, transport companies asking for more time to electrify their buses.
Have we seen too big, too fast?
On September 28, 2023, less than a year before leaving the ship, Pierre Fitzgibbon and all the political elite announced with great fanfare that the Swedish company Northvolt was going to build a vast factory on land in Montérégie.
Aid from Quebec and Ottawa could exceed seven billion for the factory dedicated to the manufacturing of battery cells and recycling.
We talked about it as a major project, about Quebec as a leader in electrification, as a flagship. We were talking about the biggest revolution since the big Hydro-Québec dams. Or the invention of plain sliced.
Phew. The wind is turning quickly, eh?
Since then, everything has been bad news after bad news for Northvolt: layoffs, liquidity problems, until officially placing itself in the shelter of its creditors three weeks ago.
The Swedish company may assure that its projects in Quebec are not compromised, but that is worrying.
And its biggest promoter, Pierre Fitzgibbon, is no longer there. He who caused a small bombshell by resigning in the middle of the fall term at the National Assembly.
What do you want, the superminister felt a “decline” in his motivation. However, there was no shortage of stimulating files on his desk.
Arriving to succeed her illustrious colleague who resigned, Christine Fréchette did well. And has managed to occupy the seat of Minister of Economy, Innovation and Energy with aplomb for the past three months.
The Leo star fades
The minister also had on her plate the difficulties of Lion Électrique, another pride whose star is fading. Riddled with debt, the manufacturer of electric trucks and school buses has until Monday to find financing or face bankruptcy. Bloomberg We also learned on Tuesday that President Nicolas Brunet resigned.
The Quebec government has invested heavily in Lion. We are talking about 177 million in recent years.
Lion Électrique has reached an agreement with Aéroports de Montréal to sell its Mirabel innovation center. (Graham Hughes/Canadian Press Archives)
Again on Monday, Minister Fréchette defended the company when she announced aid of 18 million to the Nano One battery manufacturer in Candiac.
Christine Fréchette says she still believes in Lion. But the Legault government will only embark on the rescue if the private sector does too. And “if the business plan holds up”.
For the moment in any case, the road is rough. Were we expecting miracles from Northvolt and Lion?
The year 2024 has made us realize to what extent these two companies are young shoots, startups whose roots are not that deep. In both cases, the bet was risky. Calculated, says the Legault government, but risky the same.
Another electrical issue: buses. Here again, are we going too fast?
Yes, according to the public transport companies, who hope that Minister Geneviève Guilbault will postpone certain deadlines.
From next year (in a few days in fact), the government will only subsidize the purchase of electric buses.
In 2030, 55% of the fleet of transport companies will have to be electric. It is quickly becoming a problem according to several municipalities which deplore it.
We would like to see the deadline move to 2035, or even 2040.
“The government has opened the door. We are in the process of discussing this with the government,” insisted Quebec Mayor Bruno Marchand on Thursday, on the sidelines of the presentation of the budget of the Réseau de transport de la Capitale (RTC).
The same day, the director of the RTC Nicolas Girard and its president Maude Mercier Larouche reiterated that electrification puts pressure on the network’s debt which, in turn, has an impact on the City’s debt.
And it’s like that in all municipalities. Transport companies are clear: yes to electrification, but not to the point of having to reduce services.
A person will not start taking the bus because it is electric.
She will take it because it is effective. And to be effective, the service must be developed. But for that, it takes money that transport companies don’t have if their debt explodes.
We are no further ahead.
Nor will we be advanced if the 2024 problems in the battery sector permanently taint the perception of this industry.
Electrification and decarbonization are essential and already underway.
Quebec has everything to become a major player in this energy transformation. But for that, we must prevent the bad press of recent months from demobilizing the troops. Let the electrification of transport not become synonymous with a lot of troubles.
All the more reason to take the time. Because once flat, the taxpayers’ battery will be very difficult to recharge.
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