First Phosphate (CSE: PHOS) continues to head down the lithium iron phosphate path, announcing this afternoon that it has finalized a joint LFP homologation agreement as well as an LFP production tech licensing agreement with a UK-based firm.
The agreement, entered into with Integrals Power Limited, could anchor the firms future LFP cathode active material production facilities. The tech itself is said to demonstrate improvements that should allow for LFP batteries to have simplified cooling systems, a lighter footprint, a more compact size, and lower pre-heating needs for use in cold climates.
“We have visited the IPL facilities in the United Kingdom and were able to see and touch the LFP cathode active material produced by IPL. We have also viewed the performance logs of test battery cells created using LFP cathode active material produced by IPL. We are cautiously optimistic that IPL technology could hold the answer to improved LFP battery performance,” commented CEO John Passalacqua.
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As part of the arrangement, IPL has agreed to validate First Phosphate’s LFP-grade phosphoric acid and iron sulphate for the use in LFP battery cells, and their LFP active material homologation process is slated to use these materials produced by First Phosphate.
The licensing arrangement meanwhile to use the tech will see First Phosphate granted the rights to use the tech at any LFP cathode active material production facilities to be built in Quebec or elsewhere in North America. The licensing agreement will see a 1.5% royalty applied to all active material sales. The duo meanwhile intend to capitalize on the access to green hydro-electric energy in Quebec for optionality in future production facilities built by IPL.
READ: First Phosphate Enters MOU With Prayon, Europe’s Largest Producer Of Purified Phosphoric Acid
A pilot plant for IPL’s tech is slated to be operational by the end of this year in the United Kingdom.
First Phosphate last traded at $0.70 on the CSE.
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