Monday, June 2, 2025

Latest

First Phosphate Enters MOU For Production Of Up To 40,000 Tonnes of LFP Cathode Active Material

FULL DISCLOSURE: This is sponsored content for First Phosphate.

First Phosphate (CSE: PHOS) mid-day yesterday revealed that it has entered into a memorandum of understanding to support the production of lithium iron phosphate cathode active material.

The arrangement has been entered into with that of American Battery Factory of Utah, who currently manufactures LFP battery cells. The company is currently in the process of developing a network of safe LFP cell gigafactories across the US, in an effort to develop a domestic battery supply chain.

The agreement entered into between the two parties is to support the production of up to 40,000 tonnes of cathode active material on an annual basis, with a definitive agreement set to be entered into once the two parties establish an LFP technology partner to work with the companies for the production of cathode active material.

READ: First Phosphate Produces Merchant Grade Phosphoric Acid In Pilot Program

LFP cathode active material is currently valued between US$12,000 and US$25,000 per tonne, depending on quality and other factors.

A number of items have been agreed upon by the two entities through to 2028, including:

  • First Phosphate is to supply raw material and manage logistics for the LFP cathode active material production process.
  • American Battery expects demand for cathode active material to begin in 2026, with the need for 40,000 tonnes expected by 2028 at its Tucson, Arizona plant.
  • Cathode active material produced will be used by American Battery in the production of battery cells and storage products.
  • American Battery will cooperate with First Phosphate in the development of an LFP battery ecosystem in North American, with certain facilities potentially to be located in Quebec.
  • If American Battery opens additional manufacturing capacity in North America, it will work with First Phosphate on demand forecasts.

“Raw material bottlenecks, not technology, will be the single largest impediments to the roll out of fully localized LFP batteries in North America. We lean to a sustainable raw materials development partner like First Phosphate that is fully committed to the LFP battery industry as we focus to on-shore our full production of LFP batteries in North America,” commented Major General John S Kem, President of American Battery Factory.

First Phosphate last traded at $0.36 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.

Leave a Reply

Video Articles

First Majestic Silver: The Santo Nino Discovery

Avino Silver Q1 Earnings: The Record Streak Continues!

Aya Gold & Silver Q1 Earnings: From Kitchen Sink to Record Results

Recommended

First Majestic Silver: The Santo Nino Discovery

Brazil Potash Completes Site Prep For Port Terminal

Related News

First Phosphate: New Report Suggests Flagship Property Holds ESG-Compliant Source Of Phosphate For LFP Battery Industry

First Phosphate Corp (CSE: PHOS) has received a research report from Queen’s University that suggests...

Tuesday, March 14, 2023, 11:22:30 AM

First Phosphate Drills 15.01% P2O5 Over 7.6 Metres At Begin-Lamarche

First Phosphate (CSE: PHOS) has released further assay results from its ongoing drill program at...
Tuesday, April 2, 2024, 11:08:00 AM

Peter Kent: LFP To Dominate Battery Sector By The End Of The Decade

Today on the Daily Dive, Steve sits down with Peter Kent, President & Director of...

Tuesday, April 11, 2023, 01:30:00 PM

Quebec’s Saguenay-Lac-St-Jean Looks to Become the LFP Battery Valley of North America

FULL DISCLOSURE: This is sponsored content for First Phosphate. The global effort to combat climate...

Sunday, June 11, 2023, 01:29:00 PM

First Phosphate & Arianne Phosphate: Same Mineral, Different Strategies – And Costs

FULL DISCLOSURE: First Phosphate is a client of Canacom Group, the parent company of The...

Sunday, April 23, 2023, 11:43:36 AM