Volkswagen announces USD48.2M investment in Canadian battery company


(MENAFN) Volkswagen has invested USD48.2 million in Vancouver-based Patriot Battery Metals, acquiring a 9.9 percent stake in the Canadian lithium battery firm, according to a Wednesday announcement from Patriot. This investment forms part of a broader strategic partnership between Volkswagen's battery subsidiary, PowerCo, and Patriot Battery Metals.

As part of the deal, Patriot Battery Metals will supply PowerCo with an annual amount of 100,000 tons of spodumene concentrate, a key mineral rich in lithium, over the next 10 years. This concentrate will be used in the production of batteries for electric vehicles (EVs), supporting Volkswagen's push to strengthen its supply chain for EV battery materials.

Patriot will also provide up to 90 gigawatt hours (GWh) of production capacity from its cell manufacturing operations in both Europe and North America. This capacity is projected to be enough to produce batteries for 1 million EVs annually, helping to bolster Volkswagen’s growing EV production efforts.

The agreement is designed to create a sustainable and environmentally responsible battery supply chain that aligns with environmental, social, and governance (ESG) principles. The partnership is expected to attract government grants and incentives for the development of a chemical conversion facility, further advancing the electric vehicle industry's sustainability goals.

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