Volkswagen Group’s battery unit, PowerCo SE, has established a strategic cooperation with Canadian lithium startup Patriot Battery Metals Inc. in a ground-breaking step to support its electric vehicle (EV) objectives. In addition to a legally binding promise to source 100,000 tonnes of spodumene concentrate yearly over the next ten years from Patriot’s Shaakichiuwaanaan Project in Quebec, Canada, this partnership involves a US$48 million investment to purchase a 9.9% share in Patriot Battery Metals.
One of the biggest lithium pegmatite resources in the Americas and the eighth largest in the world is the Shaakichiuwaanaan Project, which is presently being developed. PowerCo’s battery cell facilities in North America and Europe, including the proposed gigafactory in St. Thomas, Canada, which has a capacity of up to 90 GWh, would get vital lithium raw materials from this resource.
This collaboration, which is in line with their vertical integration approach “from mine to battery,” is Volkswagen and PowerCo’s first entry into the lithium supply chain. Maintaining strict environmental, social, and governance (ESG) standards is another goal of the partnership. Waste management, water conservation, community participation with First Nations, and meeting strict carbon emission targets are among the initiatives.
In order to investigate other strategic options, including a lithium conversion plant and the more comprehensive creation of an economical, sustainable supply chain for battery-grade lithium compounds, a Memorandum of Understanding (MoU) was also inked.
Through this collaboration, Volkswagen and PowerCo are advancing their efforts to create a fully electric future, guaranteeing sustained access to vital resources and establishing new standards for sustainability in the EV sector.