First Phosphate Corp. (CSE:PHOS) on Wednesday announced that it has signed a memorandum of understanding (MOU) with Lithium Australia Ltd (ASX:LIT, OTC:LMMFF) for the development of a lithium iron phosphate (LFP) and lithium manganese iron phosphate (LMFP) cathode active material manufacturing plant which will potentially be located in North America.
The company highlighted that Lithium Australia through its wholly owned subsidiary VSPC has developed proprietary technology to produce LFP and LMFP cathode active material.
It is looking for a partner to support the commercialization of its technology through the development, construction and operation of a 250-ton to 500-ton-per-year demonstration plant, to be followed by a commercial-scale manufacturing facility.
The demo plant and commercial plant will be located in either Queensland, Australia or North America, First Phosphate noted.
"This agreement could provide First Phosphate with an important technology avenue for the production of LFP cathode active material for certain clients of Lithium Australia and the company as well as serve as an important offtake for the company's future purified phosphoric acid production," First Phosphate CEO John Passalacqua said in a statement.
"The potential spodumene offtake that could be contributed into the agreement could eventually provide the company with access to an important element necessary in the manufacture of LFP/LMFP cathode active material."
The length of the MOU is two years from the date of signing or a later date as agreed by the two companies.
First Phosphate is a mineral development company fully dedicated to extracting and purifying phosphate for the production of cathode active material for the LFP battery industry.
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