Volkswagen invests $48.2M in Canadian battery firm

ISTANBUL

Volkswagen invested $48.2 million in Vancouver-based Patriot Battery Metals, according to the Canadian lithium battery firm on Wednesday.

The German automaker acquired a 9.9% stake in Patriot Battery Metals.

Volkswagen’s battery subsidiary, PowerCo, and Patriot Battery Metals signed a deal to supply an annual amount of 100,000 tons of spodumene concentrate -- a mineral with high lithium content used in the production of batteries, for 10 years.

The Canadian company will supply PowerCo with up to 90 gigawatt hours (GWh) of production capacity in its cell production operations in Europe and North America, which is estimated to be sufficient for the production of 1 million electric vehicles (EVs) per year.

The deal will establish a sustainable and ESG-compliant (environmental, social and governance) battery supply chain to attract government grants and incentives for the development of a chemical conversion facility.