Volkswagen is shoring up suppliers for its St. Thomas electric vehicle battery plant, to operate under the PowerCo division, buying into a lithium mining company to feed the plant that will make elect

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Raw material for lithium, mined in the James Bay area of Quebec, will start making its way to St. Thomas. 

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Volkswagen is shoring up suppliers for its St. Thomas electric vehicle battery plant, to operate under the PowerCo division, buying into a lithium mining company to feed the plant that will make EV batteries, the automaker announced.

Volkswagen Group is buying nearly 10 per cent of Patriot Battery Metals, a US$48 million investment, and Patriot will supply 100,000 tonnes of material every year for 10 years to the automaker.

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The supply will come from Patriot’s Shaakichiuwaanaan project in Quebec, now under development

“It’s really positive. This investment will supply plants here as well as in Europe, so it’s great for Canada, great for PowerCo,” said Sean Dyke, chief executive, St. Thomas Economic Development Corp. “Their goal is to establish and grow the supply chain” for PowerCo and Volkswagen.

It’s the second major supplier recently announced by Volkswagen for the St. Thomas manufacturer. In November it reported Novonix will supply Volkswagen with graphite, a critical component in batteries, for five years beginning in 2027. That contract is for 32,000 tonnes of synthetic graphite material.

The supplier deal also comes at a time Volkswagen is coping with unrest in Europe, with plans to close some plants and scale back others and lay off thousands of workers. In addition, threats of steep tariffs the U.S. may impose on goods shipped from Canada concern manufacturers.

“We have no doubt the project is going forward. We’re not worried,” Dyke said.

Work is continuing on the St. Thomas site with roads and rail bridges being constructed, and it’s expected the foundation will be poured in the spring, he said. “This project will be huge for the community.”

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PowerCo is Volksagen’s EV battery division. Patriot also will supply other EV battery cell factories in Europe and North America, as well as St. Thomas.

“This is the next step in PowerCo’s mission to become a global battery player with roots in Europe and North America,” Jörg Teichmann, chief procurement officer of PowerCo, said in a statement. “By building a North American supply chain for EV batteries together with partners, we are strengthening our footprint in the region and driving forward the development of a resilient, sustainable battery industry.”

The partnership ensures the long-term supply of lithium to PowerCo, said Thomas Schmall, Volkswagen Group board member.

“This investment represents a milestone in our journey toward a fully electric future. By collaborating with Patriot Battery Metals, we are not only securing key raw materials for cutting-edge, sustainable battery technology but also reinforcing our commitment to North America,” he said in a statement.

“We are building a dedicated e-mobility ecosystem in North America.”

Volkswagen’s $7-billion EV battery plant in St. Thomas is expected to open in 2027 and employ about 3,000. The plant will make EV batteries that will supply VW plants in Tennessee and South Carolina. PowerCo has more than 120 employees working out of an office on Talbot Street in St. Thomas.

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The Shaakichiuwaanaan site, located in the Eeyou Istchee James Bay region of Quebec, is considered in the Top 10 of largest lithium mining sites in the world, Volkswagen officials said.

The site will yield spodumene concentrate, a lithium-bearing mineral. The website Mining.com reported Patriot is projecting lithium material production of 400,000 tonnes a year for the Quebec site.

“The partnership with PowerCo and the investment of Volkswagen Group is a great testament to the performance and quality of our team,” said Ken Brinsden, chief executive of Patriot Battery Metals.  

ndebono@postmedia.com

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