Patriot Battery Metals has closed its previously announced private placement of $48m from Volkswagen Group to advance lithium exploration and production.
Following the closing of the deal, Volkswagen holds approximately 9.9% of Patriot Battery Metals’ issued and outstanding common shares on a non-diluted basis.
Under the agreement, Volkswagen purchased 15 million common shares at a price of C$4.42 ($3.09) per share.
The proceeds from the investment will primarily support the exploration, development, and feasibility study of Patriot Battery Metals’ Shaakichiuwaanaan lithium project in Quebec, Canada.
Funds will also be allocated for general corporate and working capital needs.
Patriot Battery Metals CEO and managing director Ken Brinsden said: “We are both pleased and proud to welcome VW as a strategic shareholder.
“Their investment in Patriot represents a significant step forward for the Company, while working towards the delivery of one of the more important lithium raw materials projects globally.”
As part of the agreement, Patriot Battery Metals and Volkswagen’s wholly-owned and vertically integrated battery manufacturer PowerCO, have finalised a binding offtake term sheet.
Under this agreement, Patriot Battery Metals will supply PowerCo with 100,000 tonnes of spodumene concentrate annually over a 10-year period.
Additionally, a non-binding memorandum of understanding (MoU) has been signed to foster an ongoing strategic relationship between the two companies.
The MoU outlines plans to collaborate on shared strategic goals, including the development of a sustainable, cost-effective, and ESG-compliant battery supply chain.
This partnership is expected to attract government incentives and explore the establishment of a chemical conversion facility to support battery production.
The transaction also includes an investor rights agreement granting Volkswagen the ability to participate in future equity raises.
The company will also provide a voting support covenant in favour of Patriot Battery Metals’ management, subject to customary conditions.
Patriot Battery Metals’ subscription agreement with Volkswagen for the private placement was formalised in December 2024.
