Canadian pension giant CDPQ is investing $150m (C$200m) to support a battery gigafactory in Quebec.
The financing will go towards the Swedish firm Northvolt’s plans to deliver Northvolt Six, a battery factory near Montreal with a potential 60 GWh per year output.
CDPQ has been supporting the development of the project for some time, Northvolt said. Early construction works are set to begin this year.
Gigafactories have become a major focus for the infrastructure industry worldwide, with major players such as Meridiam entering the space.
Paolo Cerruti, co-founder of Northvolt and chief executive of Northvolt North America, said he was “delighted to partner with such a major, long-term institutional investor that is committed to Québec’s economic and energy development.”
The financing is in the form of convertible debt in the parent company located in Sweden.