What is the background and significance of Patriot Battery Metals' partnership with Volkswagen and PowerCo?

The partnership with Volkswagen and PowerCo is a significant step for our lithium project, marking the culmination of extensive engagement with the downstream battery and automotive industries. Their investment underscores the strength of our project, which boasts scale, high grades, and long-life potential. The offtake agreement, involving 100,000 t of spodumene concentrate over ten years, is a critical first step in securing financing and advancing the project toward construction.

The US$48 million investment supports our progress toward the final investment decision, ensuring we are well-positioned to complete engineering work, secure permitting, and move toward construction. With Québec’s proximity to major markets, clean energy access, and mining-friendly environment, our project is strategically positioned for success. What did Shaakichiuwaanaan’s August 2024 PEA outline, and how is work progressing towards its feasibility study?

The PEA was a crucial milestone, establishing the project’s 24-year mine life with competitive all-in sustaining costs of approximately US$590/t. It confirmed the decision to pursue a hybrid mining approach, combining open-pit and underground methods, with the underground operation focusing on ultra-high-grade zones early on to enhance economic viability. This study validated the project as world-class, capable of competing under current lithium pricing conditions.

Resource modeling has been updated without significant surprises, and the study is on track for completion in Q3 2025. This will set the foundation for mine authorization and the final investment decision. Following the feasibility study, the Environmental and Social Impact Assessment (ESIA) and the Impacts and Benefits Agreement (IBA) with the Cree Nation are the next critical steps, leading to mine authorization and construction by late 2028 or early 2029. What is the significance of the recent cesium discovery at the project?

The discovery of cesium is highly significant. It confirms that our pegmatite system is a Lithium-Cesium-Tantalum type pegmatite, which is relatively rare and highly valuable. The scale of the cesium mineralization appears to be substantial, consistent with the overall scale of the geology we have discovered. The cesium mineralization is associated with the lithium-bearing spodumene, meaning it can be co-mined. The cesium credit, alongside the previously confirmed tantalum credit, enhances the overall economics of the project by providing additional revenue streams. How has Patriot Battery Metals built strong relationships with the Cree Nation?

We are fully committed to a true partnership with the Cree Nation. Recognizing that we are operating on their traditional lands, we sought to integrate their perspectives deeply into our project. We asked the Cree community for a name for the project. They chose Shaakichiuwaanaan, meaning "we are climbing a hill" in reference to nearby hills of cultural significance.

Beyond symbolism, we have established a local office in Chisasibi, the nearest Cree community, and we are prioritizing employment opportunities for Cree members. At times, up to 25% of our workforce has been composed of members of the Cree Nation. Building these strong, lasting relationships is a fundamental pillar of our project’s future. How do you view Shaakichiuwaanaan’s position in relation to future lithium demand?

The lithium sector is growing rapidly, with supply needing to nearly triple by 2030 to meet demand. If our project were in production today, it would be the second-largest hard rock lithium mine globally. However, to meet forecasted demand, approximately twenty projects of similar size would need to be developed by 2030, which is unlikely, increasing the risk of future supply shortages. Our timing positions us well to capitalize on the anticipated structural deficit in lithium supply.

Developing a local North American supply chain is crucial both economically and geopolitically. It improves efficiency by reducing transportation costs and creates value closer to end markets, while also reducing dependence on China, which processes about 80% of the world’s lithium raw materials. Québec is emerging as a competitive jurisdiction, offering large, high-grade lithium resources, renewable hydropower, and excellent access to infrastructure and markets. We believe Québec is key to establishing a diversified and resilient lithium supply chain for North America and Europe.