From Cars to Cores: Volkswagen Bets Big on Lithium Future

Automaker secures stake in Patriot Battery Metals as carmakers race to lock in EV mineral supply 

3 Jan 2025

Volkswagen has taken a 9.9 per cent stake in Canada’s Patriot Battery Metals, marking a significant step by the German carmaker to secure upstream access to lithium, a key mineral for electric vehicle batteries.

The AUD 70mn deal, announced in December 2024, grants Volkswagen a long-term supply agreement for lithium from Patriot’s Corvette project in Quebec, one of North America’s most closely watched hard rock lithium developments. It also includes potential for future collaboration across the project’s development phases.

The move reflects growing urgency among global carmakers to establish direct links with raw material suppliers as demand for EVs continues to rise. Battery-grade lithium is central to this shift, and sourcing it reliably is becoming critical.

“Carmakers are no longer just customers. They’re now active stakeholders,” said one analyst, describing the deal as emblematic of increasing vertical integration across the EV sector.

Volkswagen’s investment is part of a broader trend of automakers moving upstream. Industry leaders are pursuing direct stakes in mines to mitigate supply chain disruptions and reduce exposure to volatile commodity prices. These deals are also seen as responses to heightened regulatory expectations on sourcing transparency and environmental standards in Europe and North America.

For Patriot, the backing of a major global automaker offers financial and strategic advantages. It may speed up project timelines, attract further investment and raise the company’s international profile.

Still, challenges remain. Government scrutiny over foreign stakes in critical minerals may intensify, especially as Western countries seek to bolster domestic control of strategic resources. Smaller mining firms could also struggle to replicate such partnerships.

Nonetheless, the alliance underscores a deeper shift in industrial alignment. As the EV transition accelerates, carmakers are venturing beyond manufacturing into mineral procurement, reshaping traditional roles in the automotive supply chain.