First Phosphate Corp. (CSE:PHOS, OTCQB:FRSPF) announced that its recent white paper submitted to the United States Department of Defense (DoD) Defense Industrial Base Consortium (DIBC) has received a "Met" rating.
The white paper outlines a proposal to secure a North American phosphate supply for lithium iron phosphate (LFP) cathode active materials (CAM).
A "Met" rating signifies that the proposal meets the DIBC’s requirements but does not constitute an award.
The white paper is now eligible for award consideration for a period of 36 months, contingent upon DoD need and availability of funding.
First Phosphate highlighted that its proposal was deemed both technically and economically viable. The white paper suggests that, with Defense Production Act (DPA) funding, First Phosphate could develop the first dedicated phosphate production facility for LFP CAM in North America.
The DIBC stated that the schedule, timeframe, and cost rough order of magnitude presented in the white paper were realistic and feasible, provided the necessary funding is secured. It noted that DPA Title III funds appear to be the most cost-effective and expedient method to fulfill this requirement.
The assessment also highlighted that the current domestic phosphate supply is largely dedicated to the food and fertilizer sectors and that existing industry capacity is unlikely to meet battery sector demands without DPA Title III support.
Phosphate for LFP CAM was described as essential to national defense, First Phosphate also noted. According to the DIBC, amid growing demand, a domestic source of phosphate would help reduce dependence on China, which currently controls a significant portion of the LFP market.