- Volkswagen Group, alongside its battery manufacturing subsidiary, PowerCo, is set to make a $48 million investment into Patriot Battery Metals, a North America-based lithium extraction firm.
- The investment will give Volkswagen Group a 9.9% stake in the company, and will help PowerCo and Volkswagen Group to achieve a higher level of vertical integration within the ‘mine to battery’ process.
- A memorandum of understanding between PowerCo and Patriot Battery Metals has also been signed, with the duo set to explore further opportunities such as further development of its Shaakichiuwaanaan lithium project, and the opening of a lithium conversion facility.
Volkswagen Group makes $48 million investment in Patriot Battery Metals
Under the agreement, which still requires final approval from the Toronto Stock Exchange, Volkswagen Group will receive an annual supply of 100,000 tonnes of spodumene concentrate from the Shaakichiuwaanaan project, for ten years. Spodumene concentrate is a key material for producing battery-grade lithium chemicals.
This supply of materials will, in turn, help PowerCo to ramp up production at its cell sites in both North America and Europe. It’ll also provide supply for PowerCo’s largest cell factory, the St. Thomas gigafactory in Canada. Once fully ramped up, that site is expected to have an annual cell production capacity of 90 GWh. In turn, that’ll help the wider Volkswagen Group to ramp up EV supply over the coming years.
Thomas Schmall, Volkswagen Group Board Member for Technology, commented:
“This investment represents a milestone in our journey toward a fully electric future. 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.”
Ken Brinsden, CEO & Managing Director of Patriot Battery Metals, added:
“The partnership with PowerCo and the investment of Volkswagen Group is a great testament to the performance and quality of our team. At the same time, it emphasises 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.”
