Dec 18 (Reuters) - Patriot Battery Metals ( PMETF ) said on Wednesday

automotive giant Volkswagen has invested approximately C$69 million

($48.18 million) for a 9.9% stake in the Canadian lithium developer.

The German automaker paid C$4.42 per share, a 66.8% premium to Patriot's

Tuesday closing price, valuing the developer at C$625.8 million.

In addition to the equity investment, Patriot has signed a supply

agreement with Volkswagen's battery manufacturer, PowerCo SE. The deal commits

Patriot to supply 100,000 tonnes of spodumene concentrate - raw material for

producing lithium batteries for electric vehicles - annually for 10 years.

The Vancouver-based company also inked a memorandum of understanding

with PowerCo to explore joint development opportunities for the

Shaakichiuwaanaan Project in Quebec.

Volkswagen may provide additional financing to support this project in

exchange for increased offtake rights.

($1 = 1.4321 Canadian dollars)