FULL DISCLOSURE: This is sponsored content for First Phosphate.
First Phosphate (CSE: PHOS) has entered into another arrangement with American Battery Factory of Utah, building on an agreement initially entered into back in September 2023.
The company has entered into a memorandum of understanding under a multi-party agreement with American Battery Factory and Integrals Power for the production of lithium iron phosphate cathode active material as well as LFP battery cells, which are to be manufactured in North America. The arrangement is intended to support 40,000 tonnes of LFP CAM required by American Battery Factory for the production of LFP battery cells by 2028, with sustained annual demand anticipated to begin at lower levels in 2026.
Notably, First Phosphate previously also entered into an arrangement with Integrals Power, which saw the company enter a joint LFP homologation agreement as well as an LFP production tech licensing agreement.
READ: First Phosphate Enters MOU With Lithium Australia For Joint Development Of LFP Facilities
This new multi-party initiative, referred to as LFP Project America, intends to localize the production supply chain of LFP CAM and LFP battery cell storage devices to North America. Collectively, the parties are slated to conduct a pilot run of LFP CAM production that will see Integrals’ tech used, while raw materials will be supplied by First Phosphate. After a successful pilot, its intended that a larger facility will be established for production, with integrated facilities that move product from the raw material stage through to the final LFP battery cell stage one suggested possibility.
“LFP Project America is an example of suppliers from the entire supply chain coming together to build the LFP battery sector in North America. We need to go from raw materials all the way to finished battery product if we wish to develop supply chain independence in North America,” commented First Phosphate CEO John Passalacqua.
First Phosphate last traded at $0.365 on the CSE.
FULL DISCLOSURE: First Phosphate is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of First Phosphate. The author has been compensated to cover First Phosphate on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
