PowerCo SE, the battery division of Volkswagen Group, and Patriot Battery Metals have announced a strategic partnership marking Volkswagen’s first foray into the lithium supply chain. This partnership aligns with PowerCo’s vertical integration strategy, which spans from raw materials to battery production, and solidifies its commitment to securing a sustainable, long-term lithium supply.
Volkswagen Group is investing approximately CAD $65 million to acquire a 9.9% stake in Patriot Battery Metals. The partnership includes a binding offtake agreement for the supply of 100,000 tonnes of spodumene concentrate annually for 10 years once Patriot’s Shaakichiuwaanaan Lithium Project begins production. Spodumene concentrate is a critical component for producing battery-grade lithium chemicals.
This agreement is a cornerstone of PowerCo’s efforts to scale battery cell production across Europe and North America, including its gigafactory in St. Thomas, Ontario. Once operational, the St. Thomas facility will be PowerCo’s largest battery cell factory, boasting a capacity of up to 90 GWh.
Patriot’s Shaakichiuwaanaan Lithium Project, one of the largest lithium pegmatite resources in the Americas, ranks as the 8th largest globally. With high-grade deposits, the project is positioned to provide long-term security for PowerCo’s battery production facilities.
PowerCo’s support will aid in the development of the Shaakichiuwaanaan Project, reinforcing its commitment to building a resilient and sustainable lithium supply chain in North America.
The partnership emphasizes environmental, social, and governance (ESG) standards across joint activities. Initiatives include waste disposal strategies, water management systems, and engagement with First Nations communities. Both companies aim to align their operations with ambitious carbon emission targets.
Additionally, PowerCo and Patriot will explore collaborations to establish a sustainable and cost-effective supply chain for battery-grade lithium chemicals. This includes a focus on meeting ESG compliance benchmarks, reinforcing sustainability throughout the process.
The collaboration represents a significant step in securing North America’s role in the evolving electric vehicle (EV) ecosystem. With this strategic alliance, Volkswagen and Patriot Battery Metals aim to contribute to a sustainable and competitive battery supply chain, meeting the growing demand for clean energy technologies.