Dec 19, 2024 12:43 AM IST
Volkswagen will spend C$69 million ($48.1 million) on a 9.9% stake in lithium miner Patriot Battery Metals Inc. to safe uncooked supplies for electrical automobiles.
Volkswagen Group will spend C$69 million ($48.1 million) on a 9.9% stake in lithium miner Patriot Battery Metals Inc. to safe uncooked supplies for electrical automobiles.
A Volkswagen emblem is pictured at Volkswagen’s headquarters in Wolfsburg, Germany.(REUTERS)
The funding marks the European carmaker’s first funding within the mining business. It contains an settlement that can provide Volkswagen with 100,000 metric tons of lithium materials over 10 years, representing 1 / 4 of manufacturing from the primary part of Patriot Battery Metals’ undertaking in Canada, in response to the mining firm.
The fabric will provide Volkswagen’s battery vegetation in North America and Europe, Patriot Battery Metals stated.
The funding exhibits Volkswagen is pushing forward with electrical automobiles at the same time as gross sales stumble. EV gross sales rose 6.9% in Europe in October however stay down for the 12 months after policymakers decreased assist for purchases. Volkswagen in the meantime has pushed for financial savings measures together with unprecedented plant closures in Germany amid development struggles.
Lithium producers have been hit exhausting by the slowing EV market, with inventories of the uncooked materials piling up world wide. Miners have slowed growth plans and curtailed initiatives on weaker costs.
Volkswagen’s funding, nonetheless, is the newest in a latest string of lithium offers, together with Rio Tinto Group’s $6.7 billion proposal to amass Arcadium Lithium Plc in October.
Patriot Battery Metals, an Australian-headquartered firm, is looking for to construct a big lithium mine in Quebec’s north, 692 miles from Montreal. Final 12 months, the corporate bought a 4.9% stake to Albermarle Corp., the world’s largest lithium producer.
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See extra Information / Enterprise / Volkswagen acquires stake in Australian lithium agency for $48 million