Volkswagen buys 9.9% of Patriot Battery Metals for $48 million

German automaker Volkswagen (ETR: VOW3) announced on Wednesday its acquisition of a 9.9% stake in Canadian lithium company Patriot Battery Metals (TSX: PMET) (ASX: PMT) for $48 million.This marks the first time Volkswagen and its battery subsidiary, PowerCo, have directly invested in the lithium supply chain, as the company aims to secure raw material supplies from North America.The agreement includes a binding commitment for Volkswagen to receive 100,000 tonnes of spodumene concentrate annually for 10 years, starting when Patriot’s Shaakichiuwaanaan lithium project in Quebec begins production.The Vancouver-based company also signed a memorandum of understanding with PowerCo to explore joint development opportunities for the Quebec project, previously known as Corvette.Spodumene concentrate, a lithium-rich mineral, serves as a raw material for lithium-ion batteries. PowerCo plans to utilize this supply for producing battery cells in Europe and North America. Additionally, the lithium will be used in PowerCo’s cell factory currently under construction in St. Thomas, Canada, which is projected to achieve an annual production capacity of 90 GWh at full scale.“This investment represents a milestone in our journey toward a fully electric future,” said Thomas Schmall, Volkswagen Group board member for Technology, in a statement. “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.”Ken Brinsden, Patriot’s president, chief executive and managing director, described Volkswagen’s investment as a “pivotal milestone” for the company. “We are bringing in a long-term strategic partner who is already a major player in the European and North American battery supply chain,” Brinsden said in a separate statement.Largest resource in the AmericasPatriot Battery Metals is targeting an initial production capacity of 400,000 tonnes of spodumene concentrate annually. According to a preliminary economic assessment (PEA) published in August, the company plans to develop its flagship Quebec project in phases, employing both open-pit and underground mining methods.This phased approach aims to prioritize access to high-grade zones while minimizing the project’s environmental footprint.The Shaakichiuwaanaan project is the largest known lithium pegmatite mineral resource in the Americas. Its vast spodumene crystals enhance processing efficiency and recovery rates, according to Patriot.The company expects to make a final investment decision by 2027, paving the way for construction through 2028 and initial production in early 2029.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com