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Volkswagen invests C$69 million in Patriot Battery Metals for PowerCo supply

German automaker Volkswagen is investing C$69 million ($48 million) to acquire a 9.9% stake in lithium exploration company Patriot Battery Metals and secure an offtake commitment for its battery manufacturer PowerCo to supply 100,000 tonnes of spodumene concentrate per year over a 10-year term and a potential 5-year extension period.

Patriot will use the proceeds from the investment for exploration, development and completion of a feasibility study on its Shaakichiuwaanaan Lithium Project in Québec, Canada.

The offtake agreement represents around 25% of the estimated Stage 1 production or 12.5% of the combined Stage 1 and Stage 2 production from the Shaakichiuwaanaan project. The spodumene concentrate will supply PowerCo’s cell production in Europe and North America, including its battery cell factory in St. Thomas, Canada, which will have a production capacity of up to 90 GWh per year—enough to produce over 1 million electric vehicles.

PowerCo and Patriot have also signed a Memorandum of Understanding (MoU) to establish an ongoing strategic relationship to jointly explore and collaborate on opportunities for the future development of the Shaakichiuwaanaan Project, including building a battery supply chain that will attract government support and incentives and the potential development of a chemical conversion facility.

Once the feasibility study for the project is completed, Volkswagen may provide additional financing in return for additional offtake.

“This investment is consistent with our long-term strategy for Patriot to become a global lithium leader and a key supplier of lithium raw materials to the emerging North American and European battery materials supply chains,” said Ken Brinsden, Patriot’s President, CEO and Managing Director.

Source: Patriot Battery Metals

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