German carmaker Volkswagen is investing C$69 million ($48 million) to acquire a 9.9% stake in lithium explorer Patriot Battery Metals and confirm battery maker PowerCo's commitment to supply 100,000 tonnes of spodumene concentrate per year over a period of 10 years. and a possible 5-year extension period.
Patriot will use the proceeds from the investment to explore, develop and complete a feasibility study on its Shaakichiuwaanaan Lithium project in Quebec, Canada.
The takeover agreement represents approximately 25% of estimated Phase 1 production or 12.5% of combined Phase 1 and Phase 2 production from the Shaakichiuwaanaan project. The spodumene concentrate will supply PowerCo's cell production in Europe and North America, including its battery cell factory in St. Thomas, Canada, which will have a production capacity of up to 90 GWh per year – enough to produce more than 1 million electric cars.
PowerCo and Patriot have also signed a Memorandum of Understanding (MoU) to establish an ongoing partnership to jointly explore and collaborate on future development opportunities for the Shaakichiuwaanaan Project, including building a battery supply chain that will attract government support and incentives and the possible development of a chemical conversion facility.
Once the feasibility study for the project is completed, Volkswagen may offer additional funding to recoup the additional costs.
“This investment is consistent with our long-term strategy for Patriot to become a global lithium leader and a key supplier of lithium raw materials to emerging chains in North America and Europe,” said Ken Brinsden, Patriot President, CEO and Managing Director. Director.
Source: Patriot Battery Metals