Volkswagen Group (VW) has invested $48m to acquire ten per cent of Patriot Battery Metals in a new partnership to secure the supply of lithium from North America.

VW will take 100,000 tonnes of spodumene concentrate per year over a ten-year term from Patriot’s Shaakichiuwaanaan project in Quebec/Canada. The project currently under development is one of the largest lithium pegmatite resources in the Americas will supply VW’s PowerCo’s battery cell factories in Europe and North America, including its battery cell factory in St. Thomas, Canada. St.Thomas will be PowerCo’s largest cell factory with a capacity of up to 90GWh.

The new strategic partnership also includes ongoing support for the development of Patriot’s Shaakichiuwaanaan lithium project, the eighth largest lithium pegmatite resource in the world, and involves PowerCo and Patriot working together to establish industry best practice for ESG standards across all of their joint activities. This includes waste disposal measures, water management, First Nations community engagement and implementing actions to meet PowerCo’s and Patriot’s carbon emission targets.

Thomas Schmall, board member for technology, said: “This investment represents a milestone in our journey toward a fully electric future. By collaborating with Patriot Battery Metals, we are not only securing key raw materials for cutting-edge, sustainable battery technology but also reinforcing our commitment to North America. Together with partners, we are building a dedicated e-mobility ecosystem in North America, ranging from battery technology to software and specific vehicle architectures.”

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