First Phosphate (NASDAQ:PHOS) outlined its plans to supply igneous phosphate materials for North American lithium iron phosphate, or LFP, battery production, highlighting its Quebec mining project, government support, commercial partnerships and a targeted path to feasibility studies.
Speaking at an OTC Markets event in New York, Alexis de la Renaudière, First Phosphate’s team lead of business development, said the company is focused on phosphate used in LFP batteries and is based in Quebec’s Saguenay–Lac-Saint-Jean region.
Focus on igneous phosphate
The company emphasized the role of phosphate in LFP battery cathodes. According to de la Renaudière, phosphate represents 61% of the positive side of an LFP battery, while lithium represents about 4%.
First Phosphate is pursuing igneous phosphate, which de la Renaudière described as a rare and high-purity form of phosphate rock. He contrasted it with sedimentary phosphate, which he said represents roughly 80% of global phosphate deposits and is generally used for agricultural fertilizer production.
Igneous rock from the company’s region contains phosphate, iron, titanium and calcium, according to de la Renaudière. He said the material does not contain uranium and cadmium associated with some sedimentary deposits, while calcium could be used to produce gypsum for construction. He added that the company expects to convert about 98% of the rock.
The company plans to process its phosphate concentrate into purified phosphoric acid, or PPA, which is used in LFP battery materials. De la Renaudière said there are five producing PPA assets in the Western world and that about 33 additional facilities will be needed over the next decade to meet demand.
Project scale and development timeline
First Phosphate’s deposit is 2.3 kilometers long, begins at surface and remains open at depth, de la Renaudière said. The company expects the operation to be an open-pit mine and said it has drilled approximately 60,000 meters on the property.
The company published a mineral resource estimate and a preliminary economic assessment, or PEA, for the project. According to de la Renaudière, the PEA contemplated annual production of approximately 900,000 metric tons of phosphate concentrate, which he said would be equivalent to supporting 50% of electric vehicles built across the U.S., Canada and Mexico.
- CAD 2.1 billion net present value, according to the PEA
- 37.1% internal rate of return
- 2.9-year payback period
- 23-year mine life
De la Renaudière said the company has the information required to begin feasibility work and expects to publish its feasibility study by the end of the quarter or in the first quarter of 2027. In response to a question, he characterized the feasibility study as a key milestone for institutional investors, sovereign funds, pension funds and banks.
First Phosphate is targeting mine production in 2029 or 2030. It expects to conduct crushing and flotation at the mine site before transporting concentrate to a planned PPA facility at the Port of Saguenay. The company’s longer-term plans include producing cathode active material, though it does not plan to manufacture battery cells itself.
Infrastructure, partnerships and financing support
De la Renaudière said the property is about 70 kilometers from the deep-sea Port of Saguenay and is accessible through mostly paved roads. He also cited nearby hydroelectric power, rail access, an airport and a local skilled workforce, including workers associated with regional aluminum operations and a nearby niobium mine.
The company has an offtake agreement with Prayon, which de la Renaudière described as a global phosphoric-acid producer. He said Prayon is licensing its technology to First Phosphate and has used similar igneous rock feedstock for 70 years.
First Phosphate also said the Mashteuiatsh First Nation holds 1% of the company’s capital and is participating in project development. The company said it was selected by the Quebec government, alongside Dumont Nickel and Troilus Gold, for a permitting fast-track process.
De la Renaudière said First Phosphate received a CAD 16.7 million non-repayable contribution from the Canadian government for phosphate production processes for LFP applications, followed by a CAD 4.8 million contribution for mine-related work including feasibility studies, power and transmission lines.
The company also cited letters of intent from export-credit agencies, including $170 million from the U.S. EXIM Bank, a $212 million guarantee from Switzerland’s SERV, and $170 million from Denmark’s EIFO for equipment and service purchases. He said the PEA estimated capital expenditures of about CAD 480 million and that the SERV and EIFO support could cover 80% of that amount through debt.
First Phosphate said it remains debt-free, has raised approximately CAD 18 million without an underwriter, and has CAD 25 million in cash plus CAD 22 million in Canadian government facilities. De la Renaudière said the company believes it is funded for the next 18 months and through a final investment decision following feasibility work and permitting.
On tariffs, de la Renaudière said the company is currently planning Canadian assets and working with European partners, while the location of a future cathode active-material facility could be evaluated between Canada and the U.S.
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.
