First Phosphate Corp. (CSE:PHOS) shares moved higher before Monday’s opening bell after it announced it has signed a memorandum of understanding (MOU) with Las Vegas, Nevada-based Ultion Technologies for the purchase of a non-exclusive, perpetual license for technology to produce lithium iron phosphate (LFP) and lithium iron manganese phosphate (LFMP) cathode active materials (CAM).
The company highlighted that the LFP technology covered by the MOU is already being used at two production facilities, one with a 10,000 ton per year capacity and one with 50,000 ton per year capacity.
The LFMP technology is under development and producing several tons per month, it added.
Per the agreement, Ultion will grant a fully paid, royalty-free perpetual license to First Phosphate for the transfer of the LFP CAM production technology and will transfer all the documents necessary to roll out the technology commercially.
A similar package will be delivered for the LFMP package, which will also include any equipment changes or modifications required to produce LFMP with the same equipment as specified for LFP production.
First Phosphate said, per the MOU, that it will work to provide Ultion with up to 2,000 tons per year of LFP CAM for its LFP battery cell manufacturing business.
“The agreement is important to the company because it provides proven, commercial-grade LFP production technology as well as offtake into the LFP CAM specialty products segment of the market," First Phosphate CEO John Passalacqua said in a statement.
"We are building our entry into LFP CAM production in a careful and systematic manner. Access to various LFP production technologies reduces our technology risk and allows us to diversify industry exposure by servicing various markets and various client needs."
Ultion Technologies CEO Dr. Johnnie Stoker commented: “With their secure source of high purity ore and commitment to develop downstream processing of CAM, First Phosphate will become a key player in the LFP/LFMP supply chain.”
Shares of First Phosphate traded 12.5% higher at C$0.41 in premarket trade on Monday.
First Phosphate is a mineral development company dedicated to extracting and purifying phosphate for the production of cathode active material for the lithium iron phosphate (LFP) battery industry.
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