Volkswagen Secures Lithium Supply Chain with $48M Patriot Battery Metals Stake
Volkswagen secures North American lithium supply with strategic $48 million investment.

In a strategic move to secure critical raw materials for its electric vehicle (EV) ambitions, Volkswagen (ETR: VOW3) has purchased a 9.9% stake in Canadian lithium company Patriot Battery Metals (TSX: PMET) for $48 million. This groundbreaking investment underscores Volkswagen’s commitment to establishing a robust battery supply chain in North America.
Volkswagen’s First Direct Lithium Investment
This deal marks the German automaker’s inaugural direct foray into the lithium supply chain. Volkswagen’s battery subsidiary, PowerCo, spearheaded the investment, solidifying the company’s efforts to ensure a steady supply of spodumene concentrate—an essential raw material for lithium-ion batteries.
The agreement secures Volkswagen 100,000 tonnes of spodumene concentrate annually for a decade, starting when Patriot’s flagship Shaakichiuwaanaan lithium project in Quebec becomes operational. This initiative places Volkswagen in a pivotal position as the EV revolution intensifies.
A Strategic Partnership in Quebec
Patriot Battery Metals, based in Vancouver, also signed a memorandum of understanding (MoU) with PowerCo. The MoU paves the way for joint development opportunities at the Shaakichiuwaanaan project, previously referred to as the Corvette project.
Ken Brinsden, Patriot’s president and CEO, called the partnership a “pivotal milestone,” emphasizing Volkswagen’s role as a strategic long-term partner. The project will prioritize access to high-grade lithium zones while maintaining environmental sustainability.
Shaakichiuwaanaan: North America’s Largest Lithium Resource
The Shaakichiuwaanaan project, recognized as the largest lithium pegmatite mineral resource in the Americas, represents a cornerstone in North America’s EV supply chain. The phased development plan includes both open-pit and underground mining methods, targeting an initial production capacity of 400,000 tonnes of spodumene concentrate annually.
The spodumene crystals from this project enhance processing efficiency, a significant factor for Volkswagen’s production facilities in Europe and North America. The raw material will be integral to PowerCo’s cell factory in St. Thomas, Canada, which aims for an annual production capacity of 90 GWh.
Strengthening EV Supply Chains
“This investment represents a milestone in our journey toward a fully electric future,” said Thomas Schmall, Volkswagen Group board member for Technology. The acquisition aligns with Volkswagen’s broader strategy to fortify its supply chains and reduce dependence on external markets, especially as demand for lithium skyrockets globally.
Timeline to Production
Patriot Battery Metals plans to reach a final investment decision by 2027, with construction anticipated through 2028 and initial production targeted for early 2029. These timelines align with Volkswagen’s growing EV production goals.
Conclusion
Volkswagen’s acquisition of a 9.9% stake in Patriot Battery Metals is more than just a financial move—it’s a decisive step in securing the resources needed to lead the global EV market. By partnering with a key player in North America’s lithium supply chain, Volkswagen is ensuring its transition to an electrified future is not just ambitious but achievable.
