Volkswagen's Bid to Secure Lithium Supply for EV Batteries

Volkswagen and its battery subsidiary, PowerCo, have forged a landmark partnership with Canadian lithium producer Patriot Battery Metals (PBM).
It marks Volkswagen's first direct investment in lithium, a crucial raw material for electric vehicle (EV) batteries, and is a significant step towards building a sustainable EV battery supply chain in North America.
Investing in lithium supply security
Volkswagen has committed US$48m to acquire a 9.9% stake in Patriot Battery Metals, a strategic investment that strengthens its battery supply chain by integrating raw material sourcing with cell production.
The partnership includes a binding offtake agreement, ensuring Volkswagen receives a 100,000-tonne annual supply of the lithium-rich mineral, spodumene concentrate, for the next decade, sourced from the Patriot's Shaakichiuwaanaan Project in Quebec. This supply is set to support PowerCo’s battery manufacturing facilities in Europe and North America, including the St. Thomas gigafactory in Canada, which is expected to achieve a production capacity of 90 GWh.
Thomas Schmall, Volkswagen Group’s Board Member for Technology, describes the deal as transformative: “This investment represents a milestone in our journey toward a fully-electric future. By collaborating with Patriot Battery Metals, we are securing key raw materials for cutting-edge, sustainable battery technology and reinforcing our commitment to North America.”
The Shaakichiuwaanaan Project is one of the most significant lithium developments in the Americas. Currently under construction, it is projected to become the eighth-largest lithium pegmatite resource globally.
With its high-grade deposits, the project promises a stable and long-term supply of lithium for PowerCo’s operations.
Ken Brinsden, CEO of Patriot Battery Metals, highlights the project’s significance: “The investment by Volkswagen Group and PowerCo underscores the world-class status of the Shaakichiuwaanaan Lithium Project and reinforces our role in the global EV supply chain.”
Sustainability and collaboration at the core
Volkswagen, PowerCo and Patriot Battery Metals share a commitment to sustainability and environmental stewardship.
They aim to set industry benchmarks for ESG practices, with initiatives focusing on waste management, water conservation, engagement with Indigenous communities and carbon emission reductions.
The partnership also includes a Memorandum of Understanding to explore further opportunities, such as establishing a competitive and sustainable supply chain for battery-grade lithium chemicals.
“This collaboration will drive the development of a resilient and sustainable battery industry," emphasises Jörg Teichmann, CPO at PowerCo.
"Together, we aim to set a benchmark in ESG compliance while ensuring long-term security for the battery materials supply chain.”
PowerCo’s expanding North American presence
Volkswagen’s investment forms part of a wider strategy to transition to fully-electric mobility. PowerCo is central to this plan, focusing on establishing a reliable EV battery ecosystem.
While rooted in Europe, PowerCo’s expanding operations in North America reflect its ambitions to become a global leader in battery production.
The St. Thomas gigafactory will be the largest of its kind for PowerCo, supported by a steady lithium supply from projects like Shaakichiuwaanaan. This integration is key to addressing growing demand for EV batteries while maintaining cost efficiency and supply chain stability.
Volkswagen’s broader strategy also involves building an e-mobility ecosystem in North America, encompassing battery technology, raw material sourcing, software and vehicle architecture.
Summarising the business' vision, Jörg continues: "By building a North American supply chain for EV batteries with partners, we are driving forward the development of a resilient battery industry."
Laying the foundation for a sustainable future
The partnership between Volkswagen, PowerCo and Patriot Battery Metals reflects a shared commitment to sustainability, innovation and the global transition to electrified transport.
For Patriot Battery Metals, it also validates the value of its resources and positions the company as a significant player in the evolving EV supply chain.
Ken encapsulates the broader impact: “We are witnessing the foundation of a transformative future in transportation. This partnership benefits our companies and drives forward the global transition to electric mobility.”
Through strategic investments and a focus on collaboration, Volkswagen and PowerCo are not only ensuring their supply of critical raw materials but contributing to a more sustainable future for the automotive industry.
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