Summary

  • Volkswagen invests C$69 million in Patriot Battery Metals for a 9.9% stake
  • Offtake commitment for PowerCo to supply 100,000 tonnes of spodumene concentrate per year
  • Proceeds to be used for exploration and feasibility study of Shaakichiuwaanaan Lithium Project in Québec
  • Potential development of a chemical conversion facility and battery supply chain
  • Volkswagen may provide additional financing based on feasibility study results

Article

Volkswagen has made an investment of C$69 million ($48 million) to acquire a 9.9% stake in lithium exploration company Patriot Battery Metals. This investment includes an offtake commitment for its battery manufacturer PowerCo to supply 100,000 tonnes of spodumene concentrate per year for a 10-year term with a potential 5-year extension. The investment will help Patriot in the exploration, development, and completion of a feasibility study on its Shaakichiuwaanaan Lithium Project in Québec, Canada.

The offtake agreement represents a significant portion of the estimated production from the Shaakichiuwaanaan project, with the spodumene concentrate intended to supply PowerCo’s cell production in Europe and North America. This includes PowerCo’s battery cell factory in St. Thomas, Canada, which has a production capacity of up to 90 GWh per year, enough to produce over 1 million electric vehicles. The investment and offtake commitment strengthen the partnership between Volkswagen, Patriot, and PowerCo.

In addition to the investment and offtake commitment, PowerCo and Patriot have signed a Memorandum of Understanding (MoU) to establish an ongoing strategic relationship. This partnership aims to explore and collaborate on opportunities for the future development of the Shaakichiuwaanaan Project. The focus includes building a battery supply chain that attracts government support and incentives, as well as potentially developing a chemical conversion facility to further enhance the project.

Upon completion of the feasibility study for the Shaakichiuwaanaan Project, Volkswagen may provide additional financing in exchange for additional offtake. This move aligns with Volkswagen’s long-term strategy to support Patriot in becoming a global lithium leader and a key supplier of lithium raw materials to the emerging North American and European battery materials supply chains. The investment reflects Volkswagen’s commitment to advancing sustainability and expanding its presence in the electric vehicle market.

Overall, the partnership between Volkswagen, Patriot Battery Metals, and PowerCo represents a significant step towards developing a robust battery supply chain in North America and Europe. By investing in lithium exploration and securing offtake commitments, Volkswagen is not only supporting the growth of Patriot but also ensuring a stable supply of raw materials for its battery production. The collaboration between these companies highlights the importance of strategic partnerships in driving the transition towards electric mobility and sustainable energy solutions.

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