Quebec ‘will not reinvest in Lion Electric,’ announces Minister Fréchette
Posted May 1, 2025 7:15 am.
The Quebec government “will not reinvest in Lion Electric,” stated Economy Minister Christine Fréchette, who argued that it was a “difficult, but responsible” decision.
On Wednesday evening, on social media, Fréchette wrote that, while the government has a responsibility to support the growth of Quebec businesses, “one thing is clear: granting new funding to Lion Electric would not be a responsible decision.”
“We believed in Lion’s potential, but the submitted recovery plan did not justify the reinjection of significant government funds,” she argued.
Lion Electric, a Saint-Jérôme company, is currently under creditor protection under the Companies’ Creditors Arrangement Act.
A group of investors reportedly expressed interest in taking over the electric bus manufacturer’s operations, but their investments were conditional on $20 million in government assistance, according to Cogeco News.
Asked Tuesday about the possibility of granting new financial assistance to Lion, Premier François Legault only replied that the government was “currently studying the issue.”
Legault emphasized that his government still intended to electrify school transportation, but he also mentioned the difficult context for the industry with the Trump administration, which is less supportive of the sector.
Minister Fréchette ended the suspense Wednesday evening.
The Quebec government has supported Lion Electric to the tune of $177 million in recent years.
–This report by La Presse Canadienne was translated by CityNews
