Posted on 23 Jan 2025
Volkswagen Group has completed its $48 million strategic investment in Canadian lithium exploration company Patriot Battery Metals, Kallanish Power Materials learns.
The transaction officially gives the German carmaker a 9.8% share in Patriot and secures the supply of 100,000 tonnes/year of spodumene concentrate to VW’s battery company PowerCo. The offtake covers 10 years of supply, ensuring raw material for PowerCo’s battery gigafactory in St. Thomas, Ontario.
The parties also intend to explore the potential for a joint chemical conversion facility, which would see the spodumene being converted into lithium carbonate or hydroxide.
“We are both pleased and proud to welcome VW as a strategic shareholder. Their investment in Patriot represents a significant step forward for the company,” comments Patriot’s ceo Ken Brinsden.
“As a high-grade and large-scale resource in North America, Shaakichiuwaanaan is well-placed to help meet the substantial demand growth for lithium that is forecast through to the end of this decade and beyond, and in the process to grow key western supply chains, he adds.
The investment proceeds will be used for exploration, development and completion of a feasibility study for the project in Quebec. Shaakichiuwaanaan has a mineral resource estimate of 80.1 million tonnes at 1.44% lithium oxide indicated, and 62.5m t inferred. It’s touted to be the largest lithium pegmatite resource in the Americas and the eighth in the world.
Patriot believes in an upside to its potential given the property has multiple other spodumene pegmatite clusters that have not been drill tested yet.
The deal with VW was announced in December. The German carmaker paid a premium of 65% on the 30-day volume weighted average price, with a subscription price of CAD 4.42/share.
PowerCo’s St. Thomas gigafactory is planned to produce up to 90 gigawatt-hours of batteries to power around 1 million EVs per year. Before Trump’s election victory and Trudeau’s resignation, the Volkswagen Group announced plans to introduce over 25 EV models in North America by 2030.
Source:Kallanish
