Volkswagen & PowerCo Invest in North American Lithium Company Patriot Battery Metals

PowerCo SE, Volkswagen Group’s battery company, and Patriot Battery Metals Inc. have entered into a strategic partnership. The partnership ensures the long-term supply of lithium raw materials through a binding offtake commitment.

Additionally, the companies will jointly explore further strategic opportunities such as a downstream lithium supply chain.

The Volkswagen Group is investing US$48 million to acquire 9.9 percent of Patriot’s issued and outstanding common shares.

The binding offtake commitment covers the supply of 100,000 tonnes of spodumene concentrate per year for a period of 10 years.

The lithium-bearing mineral is key for the production of battery-grade lithium chemicals.

The offtake represents a key strategic milestone in ramping-up PowerCo’s cell production activities in Europe and North America, including its gigafactory in St. Thomas, Canada.

Thomas Schmall, Volkswagen Group Board Member for Technology, says: “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.”

Jörg Teichmann, Chief Procurement Officer of PowerCo, adds: “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, comments: “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.”

This is the first investment for PowerCo and Volkswagen in the lithium supply chain.