Patriot Battery stock soars as Volkswagen buys 9.9% stake

Shares of Patriot Battery Metals (Patriot Battery Metals Stock Quote, Chart, News, Analysts, Financials TSX:PMET) are topping the Canadian markets today after the company announced that Volkswagen will buy a 9.9% stake in the Canadian company.

PMET said it will sell $15.6-million shares to the German auto giant at $4.42 per share.

The hard-rock lithium exploration company said it will supply 100,000 tonnes of spodumene concentrate per year over a 10-year term to Volkswagen’s wholly owned battery manufacturer, PowerCo.

“We welcome Volkswagen and PowerCo as our strategic partner,” Patriot CEO Ken Brinsden said. “This is a pivotal milestone for Patriot as we bring in a long-term strategic partner who is already a major participant in the European and North American battery supply chain as the first customer of the globally significant Shaakichiuwaanaan project. This investment is consistent with our long-term strategy for Patriot to become a global lithium leader and a key supplier of lithium raw materials to the emerging North American and European battery materials supply chains. The initial investment by PowerCo and Volkswagen validates the world-class nature of the Shaakichiuwaanaan project, and the offtake cements the company’s future as a major lithium raw materials supplier of choice in their EV supply chain.”

At press time, shares of Patriot Battery were up 21.9% to $3.23.