Volkswagen Invests $48 Million in Canadian Firm Patriot Battery Metals

Volkswagen has announced a $48 million investment in Canadian lithium company Patriot Battery Metals. This move is part of the German automotive giant's strategy to secure a stable supply of lithium raw materials from North America.

The investment, announced on Wednesday, involves Volkswagen purchasing a 9.9% stake in Patriot Battery Metals. The agreement also includes a binding contract that requires Patriot Battery Metals to supply Volkswagen with 100,000 tons of spodumene concentrate annually for a duration of ten years.

This agreement will come into effect once production begins at the Shaakichiuwaanaan Project in Quebec, which is currently in the development phase. The project is expected to supply lithium to Volkswagen's battery subsidiary, PowerCo, in both Europe and North America.

In addition to the investment and supply agreement, Volkswagen stated that it would explore potential collaborations with PowerCo and Patriot Battery Metals. These collaborations may include further development of the Quebec project and the establishment of a lithium conversion facility.