FULL DISCLOSURE: This is sponsored content for First Phosphate.
First Phosphate (CSE: PHOS) continues to push forward in its efforts to assist in developing a strong electric vehicle supply chain within North America. The firm this morning revealed it has entered into a memorandum of understanding for the development of intermediates used within the production of lithium iron phosphate-based cathode active material, which is intended for use within the growing battery market.
The memorandum of understanding, which is non-binding in nature, has been entered into with Sun Chemical Corporation, a subsidiary of DIC Group (TYO: 4631), a US$158 billion Japan-based chemicals company. Sun Chemical is a leading North American producer of inorganic pigments, which uses the same processes for manufacturing as that of co-precipitation based cathode materials.
“Much of the machinery used in the pigment industry is similar to that required for the production of iron phosphate and iron-oxide which are key intermediates for LFP CAM. The processes, the attention to detail, the experience required is similar across both industries. Moreover, Sun Chemical also benefits from an extensive network of facilities and equipment across North America which should allow us to accelerate production of LFP CAM while benefiting from reduced outlay of capex,” commented First Phosphate CEO John Passalacqua.
The agreement entered into with Sun will see phosphate material provided by First Phosphate and its partners for the production of iron phosphate and lithium iron phosphate within North America. The arrangement is also set to include the investigation of the best source of iron to use in the synthesis process using the networks of both companies.
The duo may also jointly develop a grant application for the U.S. Department of Energy, which would be made in tandem with committed offtake from prospective customer of First Phosphate.
“Sun Chemical is pleased that First Phosphate will increase the North American supply of battery-quality phosphoric acid, a critical component of iron phosphate, and ultimately of lithium iron phosphate-based cathode materials. Sun Chemical is pleased to work with First Phosphate to qualify it for use in its developing battery materials portfolio,” commented Robert Schwartz, CTO of Sun Chemical.
First Phosphate last traded at $0.30 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.