Patriot Battery Metals, a Canadian lithium exploration company, has entered a significant strategic partnership with Volkswagen Group and its battery subsidiary PowerCo.
This partnership is a step toward advancing lithium production from Patriot’s flagship Corvette Lithium Project in Quebec, Canada. The collaboration includes a $69 million (US $48 million) investment by PowerCo, providing substantial financial support to accelerate the project’s development.
The funds will primarily be used to advance exploration and development activities at the Corvette Lithium Project, which holds significant potential for long-term lithium production to support the growing electric vehicle (EV) industry.
Under the agreement, PowerCo will acquire 21.6 million shares of Patriot for C$3.83 per share. This investment secures PowerCo a 9.9% equity stake in Patriot, strengthening its presence in the North American battery materials supply chain.
PowerCo has also entered into a binding offtake agreement with Patriot. Once production begins, PowerCo will receive 20% of the lithium produced from the Corvette Project. This agreement ensures a reliable supply of lithium for Volkswagen Group’s EV manufacturing, supporting the automaker’s plans to scale EV production and meet increasing demand in the North American market.
Both companies aim to contribute to the development of a sustainable, regionalized supply chain for EV batteries, advancing global efforts toward decarbonization and energy independence. The Corvette Lithium Project is located in Quebec’s James Bay region, known for its favorable mining environment and access to renewable hydroelectric energy.
These factors align with Volkswagen Group’s commitment to sustainability and its goal to establish a transparent, localized supply chain for critical battery materials.
Filed Under: Batteries, Technology News