First Phosphate Corp. (CSE:PHOS, OTCQB:FRSPF) said on Friday it has finalized an industrial land option agreement with the Port of Saguenay in Quebec, marking a key step toward the development of a phosphoric acid plant to support the lithium iron phosphate (LFP) battery supply chain.
The agreement gives First Phosphate the exclusive right to secure a long-term lease on the land by the end of 2027, subject to meeting financial and development milestones. Construction on the facility is expected to begin in 2028.
The proposed plant would use clean technology from Belgium’s Prayon, implemented by Italian engineering firm Ballestra, and would be located on port lands offering direct access to rail and shipping routes for exports to North American and European markets.
“This agreement confirms the strategic advantages and role of the Port of Saguenay as a natural logistics hub in northeastern Canada for the development of the critical minerals sector,” said Carl Laberge, CEO of Port Saguenay.
The site is also intended to support First Phosphate’s longer-term goal of vertical integration between upstream phosphoric acid production and downstream LFP battery material manufacturing.
The agreement builds on a memorandum of understanding signed by the company and the Port in 2022. Government officials from both federal and provincial levels attended the signing ceremony in Montreal, held at the offices of the Wallonia Export & Investment Agency.
“This is a major project for both the region and the whole of Quebec,” said Mario Simard, Member of Parliament for Jonquière. “Saguenay-Lac-Saint-Jean is carving out a place for itself in the battery industry.”
Canada has designated phosphate as a critical mineral, opening the door to federal support for projects like First Phosphate’s. Claude Guay, a federal Member of Parliament and Parliamentary Secretary to the Minister of Energy and Natural Resources, said the deal reflects “the economic opportunities these minerals bring to Canada and Quebec.”