Economy Minister Christine Fréchette says the government made its decision after the company failed to produce an acceptable plan for Quebecers.

The government has spent $510 million on the project, and has lost a $270-million investment made in Northvolt's Swedish parent company before it filed for bankruptcy in March.

Quebec hopes to recover a $240-million guaranteed loan issued to purchase the land for the plant.

The American company Lyten last month announced it hoped to purchase control of the Northvolt battery project in Quebec and said it was in discussions with the federal and provincial governments.