First Phosphate (CSE: PHOS, FRA: KD0) is a mineral development company that is entirely focused on extracting and purifying phosphate for the creation of cathode active material for the lithium iron phosphate battery industry. First Phosphate is dedicated to producing at a high purity level, in accordance with the full ESG standard, and with a minimal anticipated carbon footprint. The company went public on February 22 and given its potential, First Phosphate deserves your attention.

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LFP Battery sector growth

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The market for lithium iron phosphate batteries is anticipated to grow at a CAGR of 25.6% to reach USD 49.96 billion in 2028. In 2020, the market for luxury car rentals was worth USD 8.37 billion. According to the study, the industry will grow due to the strong demand for LifePO4 batteries in both passenger cars and electric vehicles. Battery packs made of lithium iron phosphate (LFP) have gained popularity because they provide high voltage, power density, a long life cycle, minimal heating, and increased safety. Increased interest in electric vehicles (EVs) will increase demand for LFP battery components. Tesla made news last fall when it started selling cars with lithium iron-phosphate (LFP) batteries, which are less expensive, safer, and capable of being fully charged without having to worry about hastening battery deterioration. However, they are also less energy dense than lithium-ion batteries and as a result, have a shorter range. Following a recent announcement made by CEO Jim Farley during the automaker's investor conference call, it appears that Ford EV batteries will soon follow suit.

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“At least 85% of the world’s phosphate reserve base resides in North Africa and the Middle East. This phosphatic region is composed entirely of sedimentary phosphorite and is therefore not ideally suited for the LFP battery market. The First Phosphate deposit is a strategically located North American igneous occurrence that is not directly in competition with fertilizer companies for P2O5 . Only ~5% of the global phosphate reserve base is hosted in igneous rocks, which are more desirable for the LFP market because they can contain fewer deleterious trace elements.”

Dr. Peir K. Pufahl, P.Geo

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Company Overview

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First Phosphate has over 1,500 sq. km. of total land claims that it is actively developing in the Saguenay-Lac-St-Jean Region of Quebec, Canada. First Phosphate Properties: Rare igneous phosphate rock called anorthosite typically produces high purity phosphate material with low concentrations of harmful elements.

In a previous 43-101, the Lac à l’Original delivered significant early results: 

-Indicated pit-constrained Mineral Resource of 15.8 Mt at grades of 5.18% P2O5, 4.23% TiO2 and 23.90% Fe2O3;

-Inferred pit-constrained Mineral Resource of 33.2 Mt at grades of 5.06% P2O5, 4.16% TiO2 and 22.55% Fe2O3;

-Metallurgical Testwork indicates an anticipated apatite grade of at least 38% P2O5 at over 90% recovery;

-The Lac à l’Orignal Deposit presents the potential for recovering two additional primary mineral products: a titanium oxide concentrate and an iron oxide concentrate;

-The Lac à l’Orignal Deposit contains very low levels of potentially hazardous components, such as arsenic, heavy metals and radioactivity.

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Its flagship Lac à l’Original property already witnessed 89 holes drilled for a total of 8,776m and the team realized the main deposit encounters a dimension of 1,500m long by 250m wide and up to 100m thick. Located nearby the 6th largest city in Quebec, the property enjoys several great infrastructures including access to clean Quebec Hydro and Saguenay deep sea port. 

In addition, the business entered into a Memorandum of Understanding ("MOU") dated February 23, 2023, with Prayon SA of Engis, Belgium ("Prayon"), the biggest purifier of phosphoric acid in Europe.
According to the MOU, the parties will work together to evaluate the viability and potential for partnership in the following areas in order to speed up First Phosphate's integration plan for the North American lithium iron phosphate (LFP) battery industry:
-Phosphate Concentrate Production and Offtake ;

-LFP Grade Phosphoric Acid Toll Processing ;

-LFP Grade Phosphoric Acid Production Facility License ;

-LFP Cathode Active Material Manufacturing Plant Development.

You can know more about this news release by clicking here. 

On February 16, First Phosphate announced the commencement of its exploration drilling program at its Bégin-Lamarche phosphate property in the Saguenay-Lac-St-Jean Region of Québec, Canada. The program consists of a 4,000m drilling exploration within high-grade phosphate layers, and testing assays of high grade surface phosphate coinciding with a well-defined magnetic structure.

“After obtaining results from field samples, geological reconnaissance, and a high resolution magnetic survey completed during the second half of 2022, we are excited to initiate drilling at our Bégin-Lamarche property. High grade phosphate assays in nelsonites coupled with a well-defined magnetic structure offer the potential for discovery of a large scale phosphate mineralisation area.”

First Phosphate President, Peter Kent. 

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Bottom Line

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First Phosphate (CSE: PHOS, FRA:KD0) holds the next battery’s critical element, phosphate. Phosphate needs to be extracted in North America, and the company owns the properties needed for it. The company recently IPO, meaning investors potentially haven’t seen the company yet. The company is also executing marketing, meaning more and more eyes will be checking First Phosphate’s potential.

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