Lithium project developer Patriot Battery Metals has secured a C$69-million private placement investment from Volkswagen, giving the German automotive giant a 9.9% stake in Patriot’s issued and outstanding common shares on a non-diluted basis.
The funds will drive exploration, development, and the completion of a feasibility study for Patriot’s Shaakichiuwaanaan lithium project in Quebec, Canada. Additional proceeds will address corporate expenses and working capital requirements.
Patriot CEO and Managing Director Ken Brinsden welcomed Volkswagen as a strategic shareholder, describing the collaboration as transformative.
“We are pleased and proud to have Volkswagen join us on this journey. Their investment marks a significant step forward for Patriot as we work toward delivering one of the world’s most critical lithium raw material projects,” he said.
Brinsden emphasized that the Shaakichiuwaanaan project, known for its high-grade and large-scale lithium resource, is positioned to address surging lithium demand while strengthening Western supply chains.
As part of the partnership, Patriot will supply PowerCo SE, Volkswagen’s battery manufacturing subsidiary, with 100,000 tonnes of spodumene concentrate annually for ten years under a binding offtake agreement.
Volkswagen also secured rights to participate in future Patriot equity raises and agreed to a voting support covenant for management, subject to standard conditions, under an investor rights agreement.
The collaboration includes a memorandum of understanding to establish a strategic relationship between PowerCo and Patriot.
The agreement aims to develop a cost-effective, sustainable, and ESG-compliant battery supply chain. Additionally, the memorandum explores potential government-backed incentives and plans for a chemical conversion facility to further enhance value.
With Volkswagen’s strategic investment, Patriot Battery Metals is well-positioned to advance its Shaakichiuwaanaan project, aligning with growing global lithium demand and contributing to the sustainability goals of both companies.
This partnership underscores a shared commitment to establishing robust and eco-friendly battery supply chains in North America and beyond.
