Vancouver-based Patriot Battery Metals has entered a subscription agreement with German automotive giant Volkswagen for the sale of 15.58 million shares at C$4.42 each, raising C$69 million in total proceeds. Upon completion, Volkswagen will hold a 9.9% stake in Patriot.
The funds will support exploration, development, and the completion of a feasibility study for Patriot’s Shaakichiuwaanaan project in Quebec. Additionally, the proceeds will be allocated to general corporate purposes and working capital.
As part of the agreement, Patriot will finalize a binding offtake term sheet with PowerCo, Volkswagen’s wholly-owned, vertically integrated battery manufacturing subsidiary.
The arrangement will see Patriot supply 100,000 tonnes per year of spodumene concentrate over a ten-year period.
The spodumene concentrate will feed PowerCo’s battery cell production operations in Europe and North America, including its St. Thomas facility in Canada.
Set to be PowerCo’s largest cell factory, St. Thomas will have a production capacity of up to 90 GWh—enough to manufacture batteries for over one million electric vehicles annually.
This strategic investment aligns with PowerCo’s mission to establish a robust North American electric vehicle (EV) supply chain, spanning raw material sourcing to the construction and operation of Gigafactories.
Patriot President, CEO, and Managing Director Ken Brinsden expressed enthusiasm for the partnership:
“We welcome Volkswagen and PowerCo as strategic partners.
This marks a pivotal milestone for Patriot as we secure a long-term partner deeply integrated into the European and North American battery supply chains.
Their commitment reinforces the Shaakichiuwaanaan project’s potential as a globally significant lithium resource.
“This investment aligns with our vision for Patriot to emerge as a global leader in lithium and a key supplier to the expanding battery materials supply chains in North America and Europe.”
Thomas Schmall, Volkswagen Group board member for technology, emphasized the importance of the collaboration in the company’s electrification strategy:
“This investment is a significant step in our journey toward a fully electric future. Partnering with Patriot Battery Metals not only secures essential raw materials for sustainable battery technology but also strengthens our commitment to North America.
“Together with partners, we are building a comprehensive e-mobility ecosystem in North America, encompassing battery technology, software, and specialized vehicle architectures,” Schmall added.
This partnership underscores Patriot’s growing role in the global battery materials sector and Volkswagen’s commitment to building a sustainable and localized EV supply chain.
