PowerCo, the battery manufacturer belonging to the Volkswagen group, has formed a partnership with Canadian lithium mining company Patriot Battery Metals for the long-term supply of lithium from North America.
VW said it is the first investment for PowerCo and itself in the lithium supply chain as part of its vertical integration strategy from mine to battery. They will explore further strategic opportunities such as a downstream lithium supply chain. VW Group is investing $48 million in a 9.9% stake in Patriot.
It said the binding offtake commitment covers the supply of 100,000 tonnes of spodumene concentrate per year for 10 years as soon as the Shaakichiuwaanaan Project in Quebec starts production. The company said it ranks as one of the largest lithium pegmatite resources in the Americas, and the eighth 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, it added.
The gigafactory in St. Thomas, Canada, will be PowerCo’s largest cell factory with a capacity of up to 90GWh. Thomas Schmall, VW Group board member for technology, said: “This investment represents a milestone in our journey towards 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.”
Photo: Shaakichiuwaanaan mining project in Quebec. Patriot Battery Metals
