Sept 5 (Reuters) - A Quebec Superior Court judge has declared the North American branch of battery manufacturer Northvolt insolvent as the provincial government seeks to recover $260 million owed to it, the Canadian Broadcasting Corporation reported on Friday.

Justice Janet Michelin placed Northvolt Batteries North America under creditor protection following a request earlier in the week from the province, the report said.

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Northvolt collapsed with $8 billion in debt in March after losing orders and key investor support, and missing production targets.

Canada's industry minister Francois-Philippe Champagne in March said that the government was in talks to help find a buyer for bankrupt Swedish firm Northvolt's battery plant in Quebec.

Northvolt laid off its entire staff on Thursday, a day after Economy Minister Christine Frechette said the government would not provide any further funding for its planned electric-vehicle battery plant on Montreal's South Shore, the CBC report said.

The Quebec Superior Court decision will allow the company to rehire about 15 employees to maintain the site where the factory was to be built, the report added.

Reuters could not immediately verify the report. Northvolt did not immediately respond to a Reuters request for comment.

https://www.reuters.com/business/energy/quebec-court-declares-northvolt-insolvent-province-recovers-nearly-200-million-2025-09-05/