VW announced this Wednesday the acquisition of a 9.9% stake in the Canadian lithium company Patriot Battery Metals for $48 million, approximately €45 million.
The deal now revealed is part of the German company’s strategy to secure a steady supply of lithium raw materials in North America.
The agreement reached also includes a binding contract that requires Patriot Battery Metals to supply VW with 100,000 tons of spodumene concentrate annually for a decade.
The purchase now announced by VW represents an important strategic milestone in accelerating the cell production activities of PowerCo in Europe and North America, including its gigafactory in St. Thomas, Canada, the largest cell factory of PowerCo, with a capacity of up to 90 GWh.
“This investment marks a milestone in our journey towards a fully electric future. By collaborating with Patriot Battery Metals, we are not only securing essential raw materials for cutting-edge sustainable battery technology but also reinforcing our commitment to North America”, said Thomas Schmall, member of the technology board of the VW Group.
