Volkswagen and its subsidiary PowerCo SE have entered into a strategic partnership with Canadian lithium company Patriot Battery Metals. The agreement focuses on investments and long-term contracts to secure the supply of raw materials for PowerCoʼs cell production in Europe and North America.
48 million dollars for ten-percent stake
Volkswagen acquires a 9.9-percent stake in Patriot Battery Metals for 48 million US dollars. The transaction is subject to the approval of the Toronto Stock Exchange. In addition, a supply agreement was signed for the annual delivery of 100,000 tons of spodumene concentrate over a period of ten years. These shipments will begin when production commences at the Shaakichiuwaanaan project in Quebec, Canada. The extracted spodumene concentrate will be further processed at PowerCoʼs cell plants, including the facility currently under construction in St. Thomas, Canada.
Expanded collaboration planned
In addition to the supply agreement, the partnership includes a memorandum of understanding for long-term strategic cooperation. This includes the possible joint further development of the Shaakichiuwaanaan project and the construction of a lithium conversion plant. Volkswagen and PowerCo intend to reduce their dependence on external suppliers and integrate the lithium value chain into their own structures.
