Junior miner First Phosphate Corp., Saguenay, Quebec, announced on Dec. 11 that it has signed a Memorandum of Understanding (MOU) with Ultion Technologies Inc., Las Vegas, for the purchase of a non-exclusive, perpetual license to technology for the production of lithium iron phosphate (LFP) and lithium iron manganese phosphate (LFMP) cathode active material (CAM).
“The agreement is important to the company because it provides proven, commercial-grade LFP production technology as well as offtake into the LFP CAM specialty products segment of the market,” said First Phosphate CEO John Passalacqua. “We are building our entry into LFP CAM production in a careful and systematic manner. Access to various LFP production technologies reduces our technology risk and allows us to diversify industry exposure by servicing various markets and various client needs.”
“We are excited to be working with First Phosphate in developing the lithium battery supply chain in North America,” said Ultion CEO Dr. Johnnie Stoker. “With their secure source of high purity ore and commitment to develop downstream processing of Cathode Active Materials, First Phosphate will become a key player in the LFP/LFMP supply chain. It is critical that these materials be made in our region.”
The parties said the LFP technology contemplated by this MOU is currently in production in two facilities with capacities of 10,000 mt/y and 50,000 mt/y. They estimated the market value of 50,000 mt of LFP CAM at $625 million to $1.25 billion based on recent market price ranges. The LFMP technology contemplated in this MOU is currently under development and being produced at a quantity of several mt per month.
Under the MOU, First Phosphate will work to provide Ultion with up to 2,000 mt/y of LFP CAM for its LFP battery cell manufacturing business for specialty products. Ultion is planning on beginning production in 2025, which will need up to 500 mt of LFP CAM and will ramp up to full production requiring up to 2,000 mt by 2029.
This MOU with Ultion, together with the MOU with American Battery Factory signed on Sept. 13, 2023 (GM Sept. 29, p. 26), provides First Phosphate with a total minimum offtake potential of 46,000 mt of LFP CAM to be fulfilled slowly starting in 2026 and ramping up by 2028/2029.