Quebec's auditor general has released a scathing report criticizing the provincial government's management of billions of dollars in public subsidies for battery companies. The report, published on June 10, 2026, highlights a lack of planning, oversight, and accountability in the distribution of funds aimed at establishing a battery industry in the province.
Key findings
The auditor found that the government failed to conduct proper due diligence before committing large sums to companies like Northvolt, which is building a battery plant in Saint-Basile-le-Grand. The report warns that hundreds of millions of taxpayer dollars could be lost if these companies face financial difficulties, as seen with Northvolt's recent bankruptcy protection filing in the United States.
Lack of transparency
The report also criticizes the lack of transparency in the subsidy process, noting that contracts were awarded without competitive bidding and that performance targets were often vague or unenforceable. The auditor recommends that the government implement stricter oversight mechanisms and require companies to meet clear milestones before receiving further funding.
Quebec's economy minister responded by acknowledging the need for improvements but defended the overall strategy, stating that the battery sector is crucial for the province's economic future. Opposition parties have called for a parliamentary inquiry into the matter.
The auditor's report comes amid growing concerns about the viability of Quebec's battery industry, with several projects facing delays and cost overruns. The government has committed over $10 billion in subsidies and loans to battery companies over the past five years.
