The Volkswagen Group invests 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 as soon as the Shaakichiuwaanaan Project starts production. 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. St. Thomas will be PowerCo’s largest cell factory with a capacity of up to 90 GWh.
The strategic partnership also includes ongoing support for the development of Patriot’s Shaakichiuwaanaan Lithium Project. The project is advancing rapidly and currently ranks as one of the largest lithium pegmatite resources in the Americas, and the 8th largest lithium pegmatite resource in the world. The high-grade deposit has the potential to provide long-term security to PowerCo’s battery cell factories.
Furthermore, the strategic partnership involves PowerCo and Patriot working together to establish industry best practice for ESG standards across all of their joint activities. This includes, for example, waste disposal measures, water management, First Nations community engagement and implementing actions to meet PowerCo’s and Patriot’s carbon emission targets. On the basis of a non-binding, non-exclusive Memorandum of Understanding, both companies will additionally explore collaboration opportunities to establish a sustainable, cost-competitive and ESG-compliant battery-grade lithium chemicals supply chain model.
Thomas Schmall, Volkswagen Group Board Member for Technology, said: “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, 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, 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.”
The transaction is subject to approval from the Toronto Stock Exchange (TSX). More information on the investment can be found in Patriot Battery Metals’ press release: patriotbatterymetals.com