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Volkswagen Group and PowerCo SE have announced a strategic partnership with Canadian lithium company Patriot Battery Metals. This collaboration aims to secure a long-term lithium supply from North America, reinforcing Volkswagen’s commitment to vertical integration in the battery supply chain. The partnership centers on Patriot’s Shaakichiuwaanaan Project in Quebec, which is poised to become one of the largest lithium resources in the Americas.
Key Highlights
- Investment Details: Volkswagen Group has invested $48 million to acquire 9.9% of Patriot Battery Metals’ shares.
- Lithium Supply Commitment: A binding agreement ensures the delivery of 100,000 tonnes of spodumene concentrate annually for 10 years.
- Project Scope: The Shaakichiuwaanaan Project, under development, is one of the world’s largest lithium pegmatite resources.
- Strategic Collaboration: The partnership includes exploring a lithium conversion facility and other downstream opportunities.
- Sustainability Focus: Both companies aim to establish industry-leading ESG practices for resource development.
The partnership highlights Volkswagen’s first direct investment in the lithium supply chain, emphasizing its ambition to integrate operations from mining to battery production. Patriot’s lithium deposits will support PowerCo’s battery cell factories in Europe and North America, including the St. Thomas gigafactory in Canada, which will be PowerCo’s largest facility with a capacity of up to 90 GWh.
Advancing Lithium Resource Development
The Shaakichiuwaanaan Project is advancing rapidly, ranking as one of the top lithium resources globally. The high-grade deposit is expected to bolster long-term lithium security for Volkswagen and PowerCo. Furthermore, this partnership includes an agreement to develop best-in-class ESG standards. Areas of focus include waste management, water usage, and engagement with First Nations communities, ensuring sustainable and ethical practices.
Volkswagen and PowerCo will also work with Patriot Battery Metals to create a cost-competitive and sustainable battery-grade lithium chemicals supply chain, essential for the burgeoning electric vehicle (EV) market in North America and Europe.
Industry Perspectives
Thomas Schmall, Volkswagen Group Board Member for Technology, emphasized the importance of this investment:
“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.”
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.”
Ken Brinsden, CEO of Patriot Battery Metals, highlighted the significance of this partnership:
“The partnership with PowerCo and the investment of Volkswagen Group is a great testament to the performance and quality of our team.”
Pending approval from the Toronto Stock Exchange, this collaboration sets the stage for a resilient and sustainable lithium supply chain, marking a significant milestone in the EV industry’s evolution.
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