First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF) has noted recent volatility and increased trading volume in its shares, which has followed China’s newly announced export controls on critical materials, including lithium iron phosphate (LFP) cathode active material (CAM).
Earlier this month, China’s Ministry of Commerce introduced broad unilateral export restrictions covering rare earth elements, processed critical materials, and related technologies and equipment.
Following the announcement, First Phosphate and other companies involved in the exploration, mining, processing, or manufacturing of materials affected by these controls saw sharp increases in trading activity and price fluctuations.
In the last five trading days, First Phosphate’s Canadian-listed shares have added almost 40% to trade at C$0.54.
The company said on Friday that if implemented, the restrictions on LFP CAM could affect industries that depend on such inputs, including energy storage, AI data centers, robotics, mobility, defense, and electric vehicles. LFP batteries account for the majority of global electric battery production, most of which is currently manufactured in China.
First Phosphate said it remains focused on developing a domestic LFP battery supply chain through the mining and processing of North American critical minerals.
The company recently announced production of what it described as “perhaps the first ever commercial-grade LFP 18650 battery cells using North American critical minerals.”
The phosphoric acid and iron powder used in these cells were derived from rare igneous anorthosite rock extracted from the company’s Bégin-Lamarche property in the Saguenay–Lac-Saint-Jean region of Quebec, Canada.
First Phosphate also said its recent white paper, Securing North American Phosphate Supply for LFP Cathode Materials, received a “Met” rating from the Defense Industrial Base Consortium (DIBC).
The DIBC said phosphate used in LFP cathode materials is essential to national defense and emphasized that rising demand for LFP batteries makes a domestic supply crucial to reducing reliance on China’s control of the market.
In light of these developments, the company said that it plans to accelerate its mine-to-market LFP battery supply chain strategy for North America across the sectors of energy storage, data centers, robotics, mobility, defense, and electric vehicles.