First Phosphate Corp. (CSE:PHOS) has inked a new partnership with Integrals Power Limited to develop a cost-effective, environmentally compliant process for producing battery-grade iron III phosphate precursor crucial for the lithium iron phosphate (LFP) battery industry outside of China.
The two companies will develop a cost-effective, environmentally compliant process for iron III phosphate production using First Phosphate's phosphate concentrate and magnetite as raw materials.
Iron phosphate is crucial for LFP battery production but faces supply chain challenges outside China.
In traditional LFP battery production, both in China and outside North America, a precursor is essential, typically iron phosphate, which is blended with lithium to form lithium iron phosphate, a key component in these batteries.
“To have that precursor, there's a whole market that trades for that in China, and we don't have any kind of that market,” First Phosphate CEO John Passalaqua told Proactive.
“In North America, we've gotten a lot of client requests for that. And it's something that needs to be developed.”
Under the Joint Development Agreement (JDA), the parties will collaborate on technology development.
Successful completion is expected to yield scalable, cost-effective production methods.
First Phosphate will contribute USD $250,000 towards initial development costs, with IPL funding the remainder. Additionally, First Phosphate has secured a share purchase option in IPL.