In a groundbreaking move to bolster its electric vehicle (EV) ambitions, Volkswagen Group’s battery subsidiary, PowerCo SE, has announced a strategic partnership with Canadian lithium company Patriot Battery Metals Inc. This collaboration includes a US$48 million investment to acquire a 9.9% stake in Patriot Battery Metals, along with a binding commitment to source 100,000 tonnes of spodumene concentrate annually over the next decade from Patriot’s Shaakichiuwaanaan Project in Quebec, Canada.
The Shaakichiuwaanaan Project, currently under development, is one of the largest lithium pegmatite resources in the Americas and ranks as the 8th largest globally. This deposit will supply critical lithium raw materials to PowerCo’s battery cell factories in Europe and North America, including the planned gigafactory in St. Thomas, Canada, which will boast a capacity of up to 90 GWh.
Driving Sustainability and Vertical Integration
This partnership marks Volkswagen and PowerCo’s first foray into the lithium supply chain, aligning with their vertical integration strategy “from mine to battery.” The collaboration also aims to uphold high environmental, social, and governance (ESG) standards. Initiatives include waste management, water conservation, First Nations community engagement, and meeting stringent carbon emission targets.
A Memorandum of Understanding (MoU) was also signed to explore further strategic opportunities, such as a lithium conversion facility and the broader development of a sustainable, cost-effective battery-grade lithium chemicals supply chain.
With this partnership, Volkswagen and PowerCo continue their push towards a fully electric future, ensuring long-term access to critical resources while setting new benchmarks for sustainability in the EV industry.
