First Phosphate Corp. (CSE:PHOS) announced it has entered a non-binding memorandum of understanding (MOU) with Sun Chemical Corporation to develop intermediates used to produce lithium iron phosphate-based cathode active material (LFP CAM) for the developing North American battery market.
Under the agreement, First Phosphate said Sun Chemical, a leading producer of inorganic pigments and a subsidiary of DIC Group, will use its qualified facilities in North America to manufacture iron phosphate using phosphate material from First Phosphate and its partners.
The two companies will investigate the best source of iron to use in the iron phosphate and lithium iron phosphate synthesis process. Preferred consideration will be given to Sun Chemical’s current manufacturing capabilities of iron oxide precursors and First Phosphate's mining source recovery of magnetite.
"This agreement is important to First Phosphate because Sun Chemical is a leading player in the global pigment industry,” First Phosphate CEO John Passalacqua commented in a statement.
“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.”
With Sun Chemical’s extensive network of facilities and equipment across North America, Passalacqua said the companies should be able to accelerate production of LFP CAM while benefiting from reduced outlay of capex.
First Phosphate noted that the two companies may also work together to develop a multi-party US Department of Energy (DOE) grant application in conjunction with committed offtake that may come from First Phosphate prospective customers.
“Sun Chemical is pleased to work with First Phosphate to qualify it for use in its developing battery materials portfolio,” Sun Chemical chief technology officer Russell Schwartz added.
"The expansion in cleaner energy from increased reliance on electronic vehicles and renewable energy will benefit from more accessible locally produced batteries. Any contributions Sun Chemical can make to accelerate this transformation will be consistent with our ongoing commitment to more sustainable technologies.”
First Phosphate's shares rose 3.3% to C$0.31 shortly before midday in Toronto.
First Phosphate Corp. (CSE:PHOS)is a mineral development company fully dedicated to extracting and purifying phosphate for the production of cathode active material for the lithium iron phosphate (LFP) battery industry.
The company plans to vertically integrate from mine source directly into the supply chains of major North American LFP battery producers that require battery grade LFP cathode active material emanating from a consistent and secure supply source.
~updated with share price movement~
Contact the author at stephen.gunnion@proactiveinvestors.com