PowerCo SE, the battery subsidiary of Volkswagen Group, has entered into a binding offtake agreement with Patriot Battery Metals to secure a reliable supply of lithium spodumene concentrate from the Shaakichiuwaanaan Project in Quebec, Canada.
This collaboration marks a significant step toward strengthening PowerCo’s battery production capabilities in Europe and North America.
Under the agreement, PowerCo will receive 100,000 tonnes of spodumene concentrate annually over a 10-year term once production at the Shaakichiuwaanaan Project begins. This supply will directly support PowerCo’s battery cell factories, including its facility in St. Thomas, Canada, and facilities in Europe.
By securing this long-term supply, PowerCo aims to advance its mission of creating a sustainable and regionalized supply chain for electric vehicle (EV) batteries.
The Shaakichiuwaanaan Project is currently under development and is recognized as one of the largest lithium pegmatite resources in the Americas. Situated in Quebec, the project benefits from a favorable mining environment, proximity to renewable hydroelectric energy, and alignment with PowerCo’s sustainability goals.
These factors make the project a key component in meeting the growing demand for critical battery materials as Volkswagen Group scales its global EV production.
This agreement follows PowerCo’s recent investment and offtake partnership with Patriot Battery Metals for its Corvette Lithium Project, also in Quebec, where PowerCo acquired a 9.9% equity stake and secured access to 20% of the lithium produced from the project.
Together, these agreements highlight the collaborative efforts between the two companies to bolster the availability of critical battery materials in North America.
Filed Under: Batteries, Technology News