The Volkswagen Group and its battery subsidiary PowerCo are making a significant move in the lithium supply chain with a $48 million investment in Patriot Battery Metals, acquiring a 9.9% stake in the company. This strategic partnership aims to ensure a stable lithium supply for PowerCo as the company prepares to begin industrial lithium production at its Shaakichiuwaanaan project in Quebec, Canada.
The investment goes beyond financial backing, as the agreement includes a long-term supply commitment of 100,000 tonnes of spodumene concentrate per year for ten years, starting with the commencement of production at the Shaakichiuwaanaan project. Spodumene concentrate, a lithium-containing mineral, will be used as raw material for lithium-ion batteries, with PowerCo utilizing the lithium to produce battery cells in Europe and North America. The company is also building a cell factory in St. Thomas, Canada, which is expected to have an annual production capacity of 90 GWh once fully operational.
“This investment represents a milestone in our journey toward a fully electric future,” said Thomas Schmall, Volkswagen Group Board Member for Technology. “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. Together with partners, we are building a dedicated e-mobility ecosystem in North America, ranging from battery technology to software and specific vehicle architectures.”
Jörg Teichmann, Chief Procurement Officer of PowerCo, emphasized the importance of the partnership, stating, “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.”
PowerCo will also support the future development of the Shaakichiuwaanaan project, recognized as one of the largest lithium deposits in the Americas and the eighth-largest lithium pegmatite deposit in the world. Ken Brinsden, CEO & Managing Director of Patriot Battery Metals, expressed his gratitude for the investment, noting, “The partnership with PowerCo and the investment of Volkswagen Group is a great testament to the performance and quality of our team. It also 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.”
