Patriot Battery Metals, a lithium developer based in Canada, has announced that Albemarle, the world’s largest lithium producer, will invest C$109 million ($82.6 million) for a approximately 5% stake in the company. This news has resulted in a significant increase in Patriot’s Australia-listed shares, which rose by nearly 21%.
The investment by Albemarle comes at a time when Patriot has estimated its Corvette resource to be the largest hardrock lithium deposit in the Americas. This acquisition of a stake in Patriot will help Albemarle secure a steady supply of the raw material needed for electric vehicle batteries, as it prepares to benefit from the growing U.S. automobile market. Additionally, Patriot has agreed to collaborate with Albemarle in assessing the feasibility of integrating a downstream lithium hydroxide plant with its Corvette deposit.
Recently, Patriot announced the first mineral resource estimate for spodumene pegmatite at the Corvette deposit. The estimate revealed deposits of 109.2 million tonnes of lithium oxide, which is a significant outcome for a maiden resource. Analysts believe that this discovery holds great potential and that Patriot still has room for growth.
As part of the deal, Albemarle will subscribe to approximately 7.1 million Patriot shares at a price of C$15.29 per share, representing a premium of nearly 7% to Patriot’s closing price on the TSX Venture Exchange on July 31. Patriot expects the investment to be finalized by August 4 and intends to allocate the proceeds towards expediting the development activities at the Corvette deposit, as well as for general corporate purposes.
Patriot’s CEO, Blair Way, expressed enthusiasm about the additional funding, stating that it will allow the company to advance the Corvette Property more aggressively through various activities such as drilling, permitting, and study work. This investment by Albemarle not only strengthens Patriot’s financial position but also validates the potential and significance of the Corvette deposit in the lithium market.
