Volkswagen Group’s battery company, PowerCo SE, has formed a strategic partnership with Canadian lithium company Patriot Battery Metals Inc., marking PowerCo’s first investment in the lithium supply chain. Volkswagen will invest US$48 million to acquire a 9.9% stake in Patriot Battery Metals, securing a long-term supply of lithium raw materials crucial for electric vehicle batteries.
The partnership includes a binding offtake agreement for 100,000 tonnes of spodumene concentrate per year over a 10-year period, commencing upon the start of production at Patriot’s Shaakichiuwaanaan Lithium Project in Quebec, Canada. Spodumene concentrate is essential for producing battery-grade lithium chemicals, a key component in electric vehicle batteries. The Shaakichiuwaanaan Project is one of the largest lithium pegmatite resources in the Americas and the eighth-largest globally, offering significant potential to supply PowerCo’s battery cell factories in Europe and North America, including the upcoming gigafactory in St. Thomas, Canada.
Additionally, the companies have signed a non-binding Memorandum of Understanding to explore further collaboration opportunities. This includes potential joint development of the Shaakichiuwaanaan Project and the establishment of a lithium conversion facility. The partnership focuses on creating a sustainable, cost-competitive, and ESG-compliant supply chain for battery-grade lithium chemicals. Both parties are committed to implementing high environmental, social, and governance (ESG) standards across all joint activities, such as waste disposal, water management, and engagement with First Nations communities.
Thomas Schmall, Volkswagen Group Board Member for Technology, stated, “This investment represents a milestone in our journey toward a fully electric future. By collaborating with Patriot Battery Metals, we are securing key raw materials for sustainable battery technology and reinforcing our commitment to North America.”
Jörg Teichmann, Chief Procurement Officer of PowerCo, commented, “By building a North American supply chain for EV batteries with partners, we are strengthening our regional footprint and advancing a resilient, sustainable battery industry.”
Ken Brinsden, CEO and Managing Director of Patriot Battery Metals, added, “The partnership with PowerCo and Volkswagen Group underscores the world-class status of the Shaakichiuwaanaan Lithium Project and our future role in the global EV supply chain.”
The transaction is subject to approval from the Toronto Stock Exchange (TSX).
Source: Volkswagen Group – Press Release
