Volkswagen Group and PowerCo Partner with Patriot Battery Metals to Secure Lithium Supply for EV Battery Production

Volkswagen Group and PowerCo Partner with Patriot Battery Metals to Secure Lithium Supply for EV Battery Production

(IN BRIEF) Volkswagen Group and PowerCo have partnered with Patriot Battery Metals to secure a long-term supply of lithium for EV battery production. Volkswagen is investing $48 million for a 9.9% equity stake in Patriot and has signed a 10-year agreement for 100,000 tonnes of spodumene concentrate annually from Patriot’s Shaakichiuwaanaan Lithium Project in Quebec, one of the largest lithium resources in the Americas. The partnership also includes exploring a sustainable lithium supply chain and collaboration on ESG initiatives like waste management, water conservation, and First Nations engagement. This collaboration supports PowerCo’s battery production in Europe and North America, including its St. Thomas gigafactory in Canada.

(PRESS RELEASE) SALZGITTER, 19-Dec-2024 — /EuropaWire/ — Volkswagen Group and its battery subsidiary, PowerCo, have announced a strategic partnership with Patriot Battery Metals Inc. to strengthen their access to critical lithium raw materials in North America. This collaboration marks PowerCo’s first direct investment in the lithium supply chain, reflecting its commitment to vertical integration from mining to battery production.

As part of the agreement, Volkswagen is investing $48 million to acquire a 9.9% equity stake in Patriot Battery Metals. The partnership includes a binding offtake agreement for 100,000 tonnes of spodumene concentrate annually over a 10-year period from Patriot’s Shaakichiuwaanaan Lithium Project in Quebec, Canada. This high-grade deposit, one of the largest lithium pegmatite resources in the Americas, will support PowerCo’s battery cell factories in Europe and North America, including its flagship gigafactory in St. Thomas, Canada, which is expected to produce up to 90 GWh annually.

Strategic Collaboration to Advance Sustainable Lithium Supply

The partnership extends beyond raw material supply, with PowerCo and Patriot Battery Metals signing a Memorandum of Understanding to explore additional collaboration opportunities. These include further development of the Shaakichiuwaanaan Project and the potential establishment of a lithium conversion facility to create a cost-effective, sustainable, and ESG-compliant supply chain for battery-grade lithium chemicals.

Both companies are committed to high environmental, social, and governance (ESG) standards, with plans to implement best practices for waste management, water conservation, and carbon emissions reduction. The partnership will also emphasize engagement with First Nations communities to ensure socially responsible development.

Leadership Perspectives

Thomas Schmall, Volkswagen Group Board Member for Technology, stated, “This investment is a significant step in our transition to an all-electric future. Collaborating with Patriot Battery Metals secures essential materials for sustainable battery technology while reinforcing our commitment to North America. Together, we’re building an integrated e-mobility ecosystem, from battery production to vehicle development.”

Jörg Teichmann, Chief Procurement Officer at PowerCo, highlighted the broader vision: “This partnership enhances PowerCo’s position as a global battery leader. By establishing a robust supply chain for EV batteries in North America, we’re creating a resilient and sustainable industry that aligns with our European roots and global ambitions. Patriot Battery Metals is an ideal partner to help us achieve this vision.”

Ken Brinsden, CEO of Patriot Battery Metals, added, “Volkswagen Group’s investment and our collaboration with PowerCo are clear validations of the world-class potential of the Shaakichiuwaanaan Project. We are excited to play a pivotal role in the rapidly expanding global EV supply chain.”

A Step Toward a Sustainable EV Future

The partnership underscores Volkswagen’s and PowerCo’s commitment to building a sustainable and resilient electric vehicle ecosystem. By securing a long-term lithium supply, the companies aim to meet the increasing demand for EV batteries while setting new standards for environmental and social responsibility.

The transaction is subject to approval from the Toronto Stock Exchange (TSX). Additional details are available in Patriot Battery Metals’ official press release at patriotbatterymetals.com.

Media Contacts:

Andreas Gro
Head of Communications
PowerCo SE
+49 (0) 1522 9-122413
andreas.gross@powerco.de

Jeffrey Lewis
Head of Communications, North America
PowerCo Canada
+1 (519) 851-2456
jeffrey.lewis@powerco.ca

Christopher Hauss
Corporate Communications  Head of Strategy & Finance Communications
+49 (0) 171 8769 225
christopher.hauss@volkswagen.de

Olivier Caza-Lapointe
Head, Investor Relations – North America
Patriot Battery Materials
+1 (514) 913-5264
cazalapointe@patriotbatterymetals.com

SOURCE: Volkswagen AG