Patriot Battery Metals (ASX:PMT) has closed a strategic investment with German car giant Volkswagen Group (ETR:VOW3), which raised US$48 million ($76.5 million).
In December 2024, Patriot Battery announced a binding offtake term sheet with Volkswagen’s wholly owned and vertically integrated battery manufacturer PowerCo, for Patriot to supply 100,000 tonnes of spodumene concentrate per year over 10-years.
As such, an investor rights agreement was established whereby Volkswagen can participate in equity raises by the company as well as provide a voting support covenant in favour of management, subject to certain conditions.
As a result of the now completed private placement, Volkswagen owns 9.9% of Patriot Battery’s issued capital on a non-diluted basis.
Patriot Battery, which has a market capitalisation of $523.87 million, says the proceeds will be used for exploration, development, and completing a Feasibility Study on the Shaakichiuwaanaan Lithium Project in Québec, Canada.
CEO Ken Brinsden says Volkswagen’s investment represents a step forward for the company, while working towards delivering one of the more important lithium raw materials projects globally.
“As a high-grade and large-scale resource in North America, Shaakichiuwaanaan is well-placed to help meet the substantial demand growth for lithium that is forecast through to the end of this decade and beyond, and in the process to grow key western supply chains,” Brinsden says.
As part of the strategic investment, PowerCo and Patriot entered into an non-binding memorandum of understanding to establish an ongoing relationship to jointly explore and collaborate on shared strategic objectives.
These objectives include opportunities for the future development of the Shaakichiuwaanaan project, sustainable and ESG-compliant battery supply chains that will attract government support and incentives, and the potential development of a chemical conversion facility.
Patriot Battery Metals is a hard-rock lithium explorer focused on advancing its Shaakichiuwaanaan Project located in the Eeyou Istchee James Bay region in Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Volkswagen Group
