Investing.com – Volkswagen (ETR:) announced a $48 million investment in Canadian lithium company, Patriot battery metal (TSX:). The move is part of the German auto giant’s strategy to secure a steady supply of lithium raw materials from North America.
The investment, announced on Wednesday, includes Volkswagen acquiring a 9.9% stake in Patriot Battery Metals. The deal also includes a binding agreement requiring Patriot Battery Metals to supply Volkswagen with 100,000 tons of spodumene concentrate annually for a decade.
This agreement will come into effect once the Shaakichiuwanaan project, which is currently under development in Quebec, begins production.
The project is expected to supply lithium to Volkswagen’s battery subsidiary PowerCo in both Europe and North America.
In addition to the investment and supply agreement, Volkswagen indicated that PowerCo and Patriot Battery Metals will investigate potential cooperation. This may include further development of the Quebec project and the establishment of a lithium conversion facility.
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