On January 21, 2025, Patriot Battery Metals Inc., a leading lithium exploration and development company, completed a $69-million strategic investment and an additional offtake transaction with Volkswagen AG and its battery subsidiary, PowerCo SE, to supply lithium raw materials for PowerCo’s battery cell production activities in Europe and North America.

This transaction with Europe’s largest automotive manufacturer enhances Patriot’s goals to meet the surging demand for lithium, a critical component in the global energy transition. The strategic investment and broader partnership validates Patriot as a potential key supplier to the North American and European battery supply chain markets.

As part of the strategic investment, Patriot entered into a binding offtake term sheet with PowerCo, a wholly-owned subsidiary of Volkswagen, to supply 100,000 tonnes of spodumene concentrate per year over a 10-year term. The offtake is expected to support PowerCo’s cell production activities in both Europe and North America, including its new battery cell factory in St. Thomas, Canada.

Davies Ward Phillips & Vineberg LLP represented Patriot with a cross-practice team led by Melanie Shishler (Private M&A/Mining) and including Robin Upshall, Diana Bahous and Adam Cockburn (Corporate/Securities); Christopher Anderson and Ryan Wolfe (Tax).

Allens was Australian counsel to Patriot.

Osler, Hoskin & Harcourt LLP advised Volkswagen with a team consisting of Alan Hutchison, Patrick Sullivan, Sam Cantin, Josh Blatt (Corporate), Shuli Rodal, Zach Rudge (Competition) and Josy-Ann Therrien (Litigation).

DLA Piper advised the Volkswagen Group and its battery company PowerCo SE with German and Canadian compliance due diligence.