Volkswagen, the German automaker, has recently made a strategic move by acquiring a 9.9% stake in Canadian lithium company Patriot Battery Metals for C$69m ($48m). This investment is part of Volkswagen’s broader electric vehicle (EV) strategy, which includes securing raw material supplies for EV batteries from North America.
The partnership with Patriot Battery Metals aims to explore joint development opportunities for the Quebec project, specifically focusing on the Shaakichiuwaanaan lithium project in Quebec, Canada. This project, formerly known as Corvette, is located in the Eeyou Istchee James Bay region of Quebec and is owned by Patriot Battery Metals.
As part of the agreement, Volkswagen’s battery subsidiary, PowerCo, has made a binding commitment to purchase 100,000t of spodumene concentrate annually from Patriot Battery Metals for ten years once production begins at the Shaakichiuwaanaan lithium project. This supply of lithium will be used for battery cell production in Europe and North America, including PowerCo’s new cell factory in St. Thomas, Canada, which is expected to have an annual production capacity of 90GWh at full scale.
Thomas Schmall, a Volkswagen Group board member for technology, emphasized the importance of collaborating with Patriot Battery Metals to secure key raw materials for sustainable battery technology and reinforce Volkswagen’s commitment to North America. This partnership is part of Volkswagen’s larger effort to build a dedicated e-mobility ecosystem in North America, covering battery technology, software, and vehicle architectures.
Ken Brinsden, President, CEO, and Managing Director of Patriot Battery Metals, expressed optimism about the partnership with Volkswagen, highlighting it as a pivotal milestone for Patriot as they bring in a long-term strategic partner with significant experience in the battery supply chain.
Macquarie Capital is serving as the financial advisor to Patriot Battery Metals for this partnership, with legal representation provided by Davies Ward Phillips & Vineberg in Canada and Allens in Australia.
Overall, the collaboration between Volkswagen and Patriot Battery Metals signifies a significant step towards securing a sustainable and reliable supply chain for EV batteries in North America, contributing to the growth of the electric vehicle industry and the transition towards a more sustainable future.
