(Reuters) - Patriot Battery Metals said on Wednesday automotive giant Volkswagen has invested approximately C$69 million ($48.18 million) for a 9.9% stake in the Canadian lithium developer. The German
Volkswagen Acquires Stake in Lithium Developer Patriot for C$69M
(Reuters) - Patriot Battery Metals said on Wednesday automotive giant Volkswagen has invested approximately C$69 million ($48.18 million) for a 9.9% stake in the Canadian lithium developer.
The German automaker paid C$4.42 per share, a 66.8% premium to Patriot's Tuesday closing price, valuing the developer at C$625.8 million.
In addition to the equity investment, Patriot has signed a supply agreement with Volkswagen's battery manufacturer, PowerCo SE. The deal commits Patriot to supply 100,000 tonnes of spodumene concentrate - raw material for producing lithium batteries for electric vehicles - annually for 10 years.
The Vancouver-based company also inked a memorandum of understanding with PowerCo to explore joint development opportunities for the Shaakichiuwaanaan Project in Quebec.
Volkswagen may provide additional financing to support this project in exchange for increased offtake rights.
($1 = 1.4321 Canadian dollars)
(Reporting by Sneha Kumar in Bengaluru; Editing by Mrigank Dhaniwala and Tasim Zahid)
