Volkswagen Group has made a strategic $48 million investment in Canadian lithium company Patriot Battery Metals, acquiring a 9.9% stake to ensure access to critical lithium resources for electric vehicle (EV) battery production. The agreement includes a binding offtake for 100,000 tonnes of spodumene concentrate annually over 10 years, beginning with production from Patriot’s Shaakichiuwaanaan Lithium Project.
The Shaakichiuwaanaan Project, one of the largest lithium pegmatite resources in the Americas and the 8th largest globally, is advancing rapidly. The project is set to provide long-term lithium security for PowerCo, Volkswagen’s battery subsidiary, supporting its North American and European gigafactories, including the 90 GWh facility in St. Thomas, Canada, which will be PowerCo’s largest.
The partnership also focuses on environmental and social governance (ESG) initiatives, including sustainable waste management, water conservation, engagement with First Nations communities, and efforts to meet carbon reduction goals. Both companies will explore the development of a sustainable and ESG-compliant lithium chemical supply chain.
“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,” said Thomas Schmall, Volkswagen Group Board Member for Technology.
Jörg Teichmann, Chief Procurement Officer of PowerCo said, “This is the next step in PowerCo’s mission to become a global battery player with roots in Europe and North America. By building a North American supply chain for EV batteries together with partners, we are strengthening our footprint in the region and driving forward the development of a resilient, sustainable battery industry. We are very pleased to have found such a partner in Patriot Battery Metals and to support the team in becoming one of the global lithium leaders and key supplier of lithium raw materials to the emerging North American and European EV ecosystem.”
Ken Brinsden, CEO & Managing Director of Patriot Battery Metals, emphasised the significance of the partnership and said, “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.”