Volkswagen invests in lithium supply chain

Volkswagen and PowerCo have partnered with Patriot Battery Metals to secure a supply of lithium from mines in North America.

The group Volkswagenthrough its subsidiary PowerCo specialized in batteries, has entered into a strategic partnership with the Canadian company Patriot Battery Metalsto invest in lithium supply chain.

An investment of 46 million euros

As part of the partnership, Volkswagen Group acquired 9.9% of the issued and outstanding common shares of Patriot Battery Metals for $48 million, the equivalent of approximately 46 million euros. A production purchase contract also provides for the delivery of 100,000 tonnes of spodumene concentrate per year to a period of 10 yearsfrom the launch of production on the Shaakichiuwaanaan site, located in the province of Quebec, in Canada.

“This investment is a new step in building a 100% electric future. Through the collaboration with Patriot Battery Metals, we are securing access to a raw material essential for the production of sustainable and innovative battery cells, and we are also strengthening our foothold in North America. Battery technologies, software, architectures specially dedicated to vehicles: with our partners, we are building an entire ecosystem dedicated to electromobility”declared on this occasion Thomas Schmall, Member of the Board of Management of Volkswagen Group responsible for Technology.

Lithium, an essential component for batteries

Spodumene is a lithiniferous mineral, which is an essential component in the production of lithium for electric car batteries. The Shaakichiuwaanaan site is one of the largest deposits of lithiniferous pegmatite in Americawith a high content of lithium which will ensure the supply of PowerCo’s battery cell factories in the long term. This contract will therefore support PowerCo’s battery cell production activities in Europe and North America, and in particular in the Canadian factory in Saint-Thomas, which has a maximum capacity of 90 GWh.

PowerCo and Patriot Battery Metals will implement numerous environmental, social and governance measures: this includes waste disposal, water management, support for indigenous peoples and CO2 emissions targets. A non-binding and non-exclusive memorandum of understanding will also allow the two companies to explore other collaboration opportunitieswith the aim of creating a sustainable and cost-competitive lithium supply chain.

The two companies are also studying other projects together, such as the creation of a lithium processing site.