Patriot Battery Metals Inc. (TSX: PMET | ASX: PMT | OTCQX: PMETF | FSE: R9GA) has successfully closed a C$69 million (US$48 million) strategic investment from Volkswagen Group, marking a pivotal step in the development of its Shaakichiuwaanaan Lithium Project in Quebec, Canada. This investment grants Volkswagen a 9.9% stake in Patriot’s outstanding shares, positioning the automotive giant as a key strategic partner.
Strategic Investment to Accelerate Lithium Development
The proceeds will fund exploration, development, and the completion of a Feasibility Study for the Shaakichiuwaanaan Lithium Project, which is expected to play a critical role in meeting the surging global demand for lithium.
Ken Brinsden, CEO and Managing Director of Patriot Battery Metals, expressed enthusiasm about the partnership:
“We are pleased and proud to welcome Volkswagen as a strategic shareholder. Their investment underscores the global importance of our Shaakichiuwaanaan Project, which is poised to meet the substantial demand for lithium while strengthening western supply chains.”
Key Elements of the Volkswagen Partnership
The partnership includes three significant agreements:
- Offtake Agreement: Patriot will supply PowerCo SE, Volkswagen’s battery subsidiary, with 100,000 tonnes of spodumene concentrate annually for 10 years.
- Investor Rights Agreement: Volkswagen gains the right to participate in future equity raises and a voting support covenant, fostering long-term alignment with Patriot’s management.
- Strategic Collaboration: A Memorandum of Understanding (MoU) establishes a framework for ongoing collaboration, focusing on cost-competitive, ESG-compliant battery supply chains and the potential development of a chemical conversion facility.
About the Shaakichiuwaanaan Lithium Project
Located in the Eeyou Istchee James Bay region of Quebec, the Shaakichiuwaanaan Property is a district-scale lithium project with robust mineral resources:
- Indicated Resource: 80.1 Mt at 1.44% Li₂O
- Inferred Resource: 62.5 Mt at 1.31% Li₂O
These figures position it as the largest lithium pegmatite resource in the Americas and the 8th largest globally.
Volkswagen’s Commitment to Battery Innovation
Volkswagen, through its subsidiary PowerCo SE, is rapidly expanding its expertise across the battery lifecycle, from cell production to recycling. This partnership supports Volkswagen’s goal of establishing a sustainable and competitive battery supply chain in North America.
For more details on this strategic investment and partnership, refer to Patriot’s press release dated December 18, 2024.
About Patriot Battery Metals Inc.
Patriot Battery Metals is a hard-rock lithium exploration company advancing the Shaakichiuwaanaan Project in Quebec, Canada. The project is positioned to become a cornerstone of the North American lithium supply chain, supporting the global transition to clean energy.
About PowerCo SE and Volkswagen AG
PowerCo SE, a subsidiary of Volkswagen AG, focuses on advanced battery technologies. Volkswagen AG is a global leader in the automotive industry, driving innovation across vehicle production and battery development.
