First Phosphate (NASDAQ:PHOS) is advancing an igneous phosphate project in Quebec aimed at supplying the lithium iron phosphate, or LFP, battery supply chain, Chief Executive Officer John Passalacqua said during a Virtual Investor Conferences presentation.
Passalacqua described the company as a mine-to-market developer focused on producing high-purity phosphate concentrate and potentially purified phosphoric acid for battery materials. Unlike traditional phosphate operations that primarily serve fertilizer markets, First Phosphate is targeting the LFP battery sector, where phosphate represents a substantial component of the cathode material.
LFP Market and Supply-Chain Focus
Passalacqua said LFP batteries have expanded beyond electric vehicles into stationary energy storage, data centers, robotics, marine applications, agriculture, defense, telecom and small mobility. He said the technology’s fire safety, cost profile and operating life have supported wider adoption.
He also emphasized the geographic concentration of LFP battery production, saying China remains the dominant supplier while North America and Europe account for comparatively small portions of global production. First Phosphate’s strategy is intended to support efforts to develop a Western LFP supply chain, he said.
According to Passalacqua, an LFP cathode contains roughly 4% lithium, 35% iron and 61% phosphate. He said the company believes phosphate supply for battery use could become increasingly important as LFP deployment grows.
The company is focused on igneous phosphate rock, which Passalacqua contrasted with sedimentary phosphate deposits commonly used in fertilizer production. He said the company’s rock from the Saguenay–Lac-Saint-Jean region can be processed to produce high-purity phosphoric acid, while also yielding ilmenite, magnetite and silicate materials through what he described as solventless recovery.
Quebec Resource and Infrastructure
First Phosphate’s principal Bégin-Lamarche deposit is located in the Saguenay–Lac-Saint-Jean region of Quebec. Passalacqua said the open-pit resource measures approximately 2.7 kilometers long, 500 meters wide and 400 meters deep, and remains open at depth.
The company recently updated its mineral resource estimate, increasing the indicated resource category by 378%, according to Passalacqua. He said a previous preliminary economic assessment outlined:
- A net present value of C$2.1 billion;
- An internal rate of return of 37%;
- A 2.9-year payback period;
- A 23-year mine life;
- Annual production of 900 kilotons; and
- A strip ratio of 1.5 to 1.
Passalacqua said the mine site is roughly 70 kilometers from the Port of Saguenay and close to roads and electrical infrastructure. The company plans to produce phosphate concentrate at the mine, ship some material to offtake customers, and potentially process additional material near the port into phosphoric acid and battery cathode materials.
He said the region’s established forestry and aluminum industries provide access to a workforce, equipment suppliers, rail service and deep-water port infrastructure. The company also expects workers to commute to the mine rather than requiring a remote work camp.
Government Support, Offtake and Timeline
Passalacqua said First Phosphate has received fast-track status under Quebec’s Filon process and C$21.5 million in non-dilutive, non-repayable Canadian government support for feasibility work, power transmission and road infrastructure.
He also said the company’s mine and phosphoric acid plant were among 13 projects recognized through the G7 Critical Minerals Resilience and Production Alliance. According to Passalacqua, the government of Denmark has provided an export credit guarantee of approximately $190 million, while Switzerland has provided support totaling $212.5 million. He said the combined amount represents about $400 million against estimated capital expenditures of $475 million.
The company has also secured what Passalacqua characterized as definitive, bankable offtake agreements for 200,000 tons of phosphate concentrate and 60,000 tons of phosphoric acid concentrate.
First Phosphate expects to enter its feasibility study by the first quarter of 2027, complete environmental work during the second quarter of 2027, submit permitting applications by early 2028 and target a final investment decision by mid-2028. Passalacqua said production is targeted for 2030, while noting elsewhere in the presentation that the company hopes to have the mine in operation by late 2029 or early 2030.
Financing and Downstream Strategy
Passalacqua said the company is debt-free and has raised $80 million to date. During the presentation, he cited $15 million in the bank at one point and later said cash was “over $25 million,” in addition to access to federal contributions. He said the company has approximately two years of cash runway and does not currently anticipate a need for further capital raises during that period.
Looking beyond the mine, Passalacqua said First Phosphate intends to focus first on phosphate concentrate production and then potentially purified phosphoric acid production. Further processing into LFP cathode active material may be conducted through partnerships or by other companies.
He said First Phosphate and partner Ultion in Nevada have produced 150 LFP battery cells using North American critical minerals in both the anode and cathode. The cells were cycled 2,000 times, Passalacqua said, which he characterized as validation of the materials and supply-chain partners involved.
About First Phosphate (NASDAQ:PHOS)
First Phosphate Corp. is a Canadian mineral development company focused on building an integrated supply chain for lithium iron phosphate (LFP) batteries. The company’s activities include the exploration and development of phosphate mineral properties, the production of purified phosphoric acid and phosphoric salts, and the eventual manufacture of LFP cathode active material for use in lithium-ion batteries.
First Phosphate’s mineral projects are located in Quebec’s Saguenay–Lac-Saint-Jean region, an area with established hydroelectric power, transportation infrastructure and industrial resources.
