Quebec Auditor General Christine Roy said the province's strategy to develop a battery industry was poorly planned and lacked clear objectives.
The findings highlight a significant risk to public funds, as the government committed billions to a critical emerging sector without a framework to measure success. This lack of oversight makes it difficult for taxpayers to determine if the investments are yielding a return.
According to the report, the Coalition Avenir Québec (CAQ) provincial government failed to establish specific timelines or performance metrics for the $2.2 billion [1] of public money invested in battery companies. Roy said this approach offered the public little ability to assess the actual results of the spending.
The report, released in June 2024, suggests that the province moved forward with massive financial commitments before finalizing a comprehensive strategy. This gap in planning left the government without the tools necessary to hold companies accountable or pivot if the industry goals shifted.
Roy said the absence of clear goals and benchmarks created an environment where the effectiveness of the $2.2 billion [1] investment could not be properly audited. The report emphasizes that strategic planning should precede the allocation of such significant public resources to ensure economic viability.
While the province aims to become a global hub for battery production, the current audit indicates that the administrative foundation for this ambition was insufficient. The government's focus on rapid deployment appeared to override the necessity for rigorous fiscal planning, and oversight.
“The province’s strategy to develop a battery industry was poorly planned.”
This report underscores the tension between the desire for rapid industrialization in the green energy sector and the requirements of public fiscal accountability. By bypassing traditional planning phases, Quebec risked inefficient capital allocation in a volatile global market, potentially setting a precedent for how other jurisdictions handle subsidies for emerging technologies.
