First Phosphate Corp. (CSE: PHOS) (OTC: FRSPF) (FSE: KD0) ("First Phosphate") is pleased to announce that it has entered into a multi-party agreement with American Battery Factory Inc. ("ABF") of Utah, USA and Integrals Power Limited ("IPL") of Milton Keynes, United Kingdom to produce lithium iron phosphate ("LFP") cathode active material ("CAM") and LFP battery cells in North America.
The initiative ("LFP Project America") is to support ABF's eventual need for up to 40,000 tonnes of annual fully localized LFP CAM for LFP battery cell production in North America by 2028. LFP Project America aims to eventually localize the entire production supply chain of LFP CAM, LFF battery cells storage devices for the battery storage sector to North America.
Pre-recorded Interview on the initiative: https://www.youtube.com/watch?v=S-8HBv3OjLI
The following mutually beneficial arrangements have been agreed upon by the parties:
- Project America will be undertaken by First Phosphate, ABF and IPL and will invite other suppliers into the project group to support this initiative.
- First Phosphate, ABF and IPL will co-operate in the creation of a pilot run of LFP CAM for the use in ABF LFP battery cells using IPL technology and raw materials provided by First Phosphate.
- After the successful pilot for LFP Project America has been completed, the three parties will work together to build a North American supply plant to supply LFP CAM to ABF.
- Integrated facilities that move from raw materials into final LFP battery cells and final LFP storage device production, and which would require tighter integration by the current parties and other potential third parties, could also be considered and will form part of advanced discussions between the parties.
- ABF projects sustained annual demand for LFP CAM starting in 2026 rising to 40,000 tonnes (20 GWh) by 2028 at its first planned LFP battery manufacturing facility in Tuscon, Arizona. ABF intends to construct several other LFP battery manufacturing facilities across North America, each of which should require a similar amount of LFP CAM.
- First Phosphate, ABF and IPL will begin a homologation process whereby First Phosphate raw source materials and LFP CAM produced by LFP Project America will be integrated directly into ABF battery cells and tested in ABF end-user battery storage products.
"We are excited to be part of LFP Project America," says ABF President, Major General (US-Army Retired) John S. Kem. "To enable our energy future, we need strategic relationships like this one that are committed to using innovative techniques and local materials, tied to sustainable environmental practices. LFP Project America does just that."
"This is a synergistic collaboration that will allow for accelerated development of green LFP technology that improves net zero goals," says IPL CEO, Behnam Hormozi.
"LFP Project America is an example of suppliers from the entire supply chain coming together to build the LFP battery sector in North America," says First Phosphate CEO, John Passalacqua. "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."
First Phosphate has access to clean igneous anorthosite phosphate-bearing rock in Quebec, Canada that it intends to purify into a large quantity of battery-grade purified phosphoric acid to support LFP Project America.