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German automaker Volkswagen has acquired a 9.9% stake in Canadian lithium company Patriot Battery Metals for C$69m ($48m).
This strategic move is aimed at securing raw material supplies for electric vehicle (EV) batteries from North America.
Volkswagen's investment is part of its broader EV strategy, which also includes a $5.8bn stake in Rivian, the revival of the Scout brand, and a partnership with solid-state cell maker QuantumScape.
Volkswagen Group board member for technology Thomas Schmall said: "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."
Patriot Battery Metals, a Vancouver-based hard-rock lithium exploration company, is advancing its 100%-owned Shaakichiuwaanaan property in Quebec, Canada (formerly known as Corvette) located in the Eeyou Istchee James Bay region of Quebec, Canada.
The agreement with Volkswagen includes a binding commitment to provide the automaker with 100,000t of spodumene concentrate annually for ten years, starting when production begins at the Shaakichiuwaanaan lithium project.
The memorandum of understanding (MoU), signed between Patriot and Volkswagen's battery subsidiary PowerCo, will explore joint development opportunities for the Quebec project.
Patriot president, CEO & managing director Ken Brinsden said: "This is a pivotal milestone for Patriot as we bring in a long-term strategic partner who is already a major participant in the European and North American battery supply chain as the first customer of the globally significant Shaakichiuwaanaan Project.”
Also, PowerCo intends to use the lithium supply for battery cell production in Europe and North America, including its new cell factory under construction in St. Thomas, Canada, which is expected to reach an annual production capacity of 90GWh at full scale.
Macquarie Capital is serving as the financial advisor to Patriot, with legal representation by Davies Ward Phillips & Vineberg in Canada and Allens in Australia.
"Volkswagen buys 9.9% stake in Patriot Battery Metals for $48m" was originally created and published by Just Auto, a GlobalData owned brand.
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