VW acquires stake in Canadian lithium company for PowerCo
The investment in Patriot Battery Metals is not just a financial investment. It is a strategic partnership, as the deal also includes a long-term supply commitment to secure PowerCo’s lithium supply. The binding supply commitment covers 100,000 tonnes of spodumene concentrate per year for ten years, effective from the start of production at the Shaakichiuwaanaan project.
Spodumene concentrate is a lithium-containing mineral that can be used as a raw material for lithium-ion batteries. PowerCo intends to use it to produce corresponding battery cells in Europe and North America. The lithium will also be used in PowerCo’s cell factory, which is currently built in St. Thomas, Canada. It is expected to have an annual production capacity of 90 GWh in its final expansion stage.
“This investment represents a milestone in our journey toward a fully electric future,” said Thomas Schmall, Volkswagen Group Board Member for Technology. “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, added: “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.”
As part of the deal, PowerCo will also support the future development of the Shaakichiuwaanaan project, recognised as one of the largest lithium deposits in the Americas and the eighth-largest lithium pegmatite deposit in the world.
“The partnership with PowerCo and the investment of Volkswagen Group is a great testament to the performance and quality of our team,” said Ken Brinsden, CEO & Managing Director of Patriot Battery Metals. “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.”
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