FULL DISCLOSURE: The Deep Dive is long the equity of First Phosphate.
First Phosphate Corp (CSE: PHOS) has announced plans to develop a new iron phosphate plant in Saguenay-Lac-Saint-Jean, Quebec. This facility, referred to as “First Saguenay,” will produce 10,000 tonnes of iron phosphate annually, a key precursor in the manufacture of lithium iron phosphate (LFP) batteries.
The plant marks a significant step in First Phosphate’s vision to establish a fully integrated supply chain for LFP batteries in North America, utilizing Quebec’s natural resources and infrastructure.
The First Saguenay plant is part of a larger effort to make Quebec a hub for LFP battery production, a sector that is gaining traction due to the rising demand for electric vehicles (EVs) and energy storage solutions. LFP batteries are valued for their safety, cost-effectiveness, and longer lifecycle compared to other battery chemistries like nickel-cobalt-manganese (NCM) batteries.
“This announcement is another very positive step for phosphate mining in our region, and the start of the LFP sector in Saguenay-Lac-St-Jean,” said Andrée Laforest, Quebec’s Minister of Municipal Affairs and Minister responsible for the Saguenay-Lac-Saint-Jean region. “We’ve been talking about this potential for a long time, and we’re finally seeing it come to fruition.”
First Phosphate’s strategy for the plant aligns with its broader vision to create a local value chain for LFP batteries, from mining raw phosphate to producing iron phosphate and eventually LFP battery cathode materials. This effort is part of what the company calls Quebec’s “LFP Battery Valley.”
The First Saguenay facility is located in La Baie, Saguenay, close to key transportation and shipping routes. Just 20 kilometers from the deep-sea Port of Saguenay, the plant has access to international shipping corridors, allowing it to serve global markets. Additionally, the facility benefits from direct access to the Canadian National Railway (CNR), which connects to other North American rail networks, providing a seamless logistics chain for importing materials and exporting products.
“This plant is the first link in the LFP Battery Valley in Saguenay-Lac-St-Jean,” said Éric Larouche, Chairman of the Board of Promotion Saguenay. “Our goal is to create this North American value chain right here at home: from the phosphate mine to LFP cathode powder and, eventually, to the battery itself.”
The facility’s location is further enhanced by its proximity to Canadian Air Forces NATO Base Bagotville and its airport, which offers both passenger and freight services.
The development of the First Saguenay plant will require an estimated investment of $90 million. While the project’s 10-year lease is conditional on securing financing, First Phosphate is exploring various funding options, including non-dilutive financing models. The lease also includes provisions for expanding the facility over time, with access to additional industrial space and greenfield land adjacent to the site.
In terms of economic impact, the project is expected to create approximately 100 high-tech jobs in the Saguenay-Lac-Saint-Jean region. Local economic organizations, including Promotions Saguenay and the Saguenay-Le Fjord Chamber of Commerce, have expressed their support for the project.
“This commitment with First Phosphate sends a clear signal about our potential to position within the battery ecosystem,” said François Tremblay, Quebec Member of Parliament for Dubuc. “Home-grown raw material and an international shipping corridor will help us contribute to global decarbonization efforts.”
The plant will use proven technology already in operation at two other facilities worldwide, one with a capacity of 10,000 tonnes per annum and another with a capacity of 50,000 tonnes per annum. First Phosphate has partnered with U.S.-based Ultion Technologies to conduct a feasibility study, assessing the plant’s infrastructure needs and outlining the retrofitting required to meet production goals.
Production is expected to begin in early 2026, with the plant aiming to serve rising demand from key sectors such as energy storage, electric vehicles, and other battery-related industries. The company has existing partnerships with clients like American Battery Factory and is in advanced discussions with other potential buyers.
First Phosphate last traded at $0.19 on the CSE.
FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive is long the equity of First Phosphate. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
