Investing.com — Volkswagen (ETR:) has introduced an funding of $48 million within the Canadian lithium firm, Patriot Battery Metals (TSX:). The transfer is a part of the German automotive big’s technique to safe a gradual provide of lithium uncooked supplies from North America.
The funding, introduced on Wednesday, contains Volkswagen buying a 9.9% stake in Patriot Battery Metals. The deal additionally features a binding settlement that obliges Patriot Battery Metals to provide Volkswagen with 100,000 tons of spodumene focus yearly for a decade.
This settlement will come into impact as soon as the Shaakichiuwaanaan Venture in Quebec, which is at present below growth, begins manufacturing.
The undertaking is predicted to provide lithium to Volkswagen’s battery subsidiary, PowerCo, in each Europe and North America.
Along with the funding and provide settlement, Volkswagen indicated that PowerCo and Patriot Battery Metals will examine potential collaborations. These could embrace additional growth of the Quebec undertaking and the institution of a lithium conversion facility.
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