Volkswagen invests $48 million for 9.9% stake in Patriot Battery Metals

German automaker Volkswagen has invested around USD 48 million for a 9.9% stake in Canadian lithium developer Patriot Battery Metals. 

Patriot has also signed a supply agreement with Volkswagen’s battery manufacturer, PowerCo, under which the Vancouver-based company is expected to supply 100,000 tonnes of spodumene concentrate annually for 10 years.

Spodumene concentrate is a raw material used for producing lithium batteries for electric vehicles.  

PowerCo’s battery production in Europe and North America will benefit from this supply, including its battery cell factory in St. Thomas, Canada, which is set to become PowerCo’s biggest factory with a production capacity of up to 90 gigawatt-hours, enough to power over one million electric vehicles annually, according to a media release issued by the Volkswagen group.

Patriot also signed an agreement with PowerCo to explore joint development opportunities for the Shaakichiuwaanaan Project in Quebec.

Volkswagen may provide additional financing to support this project in exchange for increased offtake rights, according to a report by Reuters.

“This investment represents a milestone in our journey toward a fully electric future. By collaborating with Patriot Battery Metals, we are not only securing key raw materials for cutting-edge, sustainable battery technology but also reinforcing our commitment to North America,” Thomas Schmall, Volkswagen Group Board Member for Technology, said. “Together with partners, we are building a dedicated e-mobility ecosystem in North America, ranging from battery technology to software and specific vehicle architectures.”

“This is the next step in PowerCo’s mission to become a global battery player with roots in Europe and North America. By building a North American supply chain for EV batteries together with partners, we are strengthening our footprint in the region and driving forward the development of a resilient, sustainable battery industry,” Jörg Teichmann, Chief Procurement Officer of PowerCo, said. “We are very pleased to have found such a partner in Patriot Battery Metals and to support the team in becoming one of the global lithium leaders and key supplier of lithium raw materials to the emerging North American and European EV ecosystem.”

“The partnership with PowerCo and the investment of Volkswagen Group is a great testament to the performance and quality of our team,” Ken Brinsden, CEO & Managing Director of Patriot Battery Metals, said. “At the same time, it emphasizes the world-class status of the Shaakichiuwaanaan Lithium Project and the excellent prospects for Patriot Battery Metals' future role in the promising global EV supply chain.”