Saguenay, Quebec – Newsfile Corp. – December 11, 2023 – First Phosphate Corp. (CSE PHOS) (OTC: FRSPF) (FSE: KD0) (“First Phosphate” or the “Company”) is pleased to announce that it has signed a Memorandum of Understanding (“MOU”) with Ultion Technologies Inc ( “Ultion”) of Las Vegas, Nevada for the purchase of a non-exclusive perpetual license to the technology for the production of lithium iron phosphate (“LFP”) and lithium iron cathode active material (“CAM”) “) to manganese phosphate (“LFMP”).
The LFP technology envisaged by this MoU is currently in production at two facilities, one with a capacity of 10,000 tonnes per year and the other with a capacity of 50,000 tonnes per year. The market value of 50,000 tonnes of LFP CAM can be estimated between USD 625,000,000 and USD 1,250,000,000 based on recent market price ranges. The LFMP technology envisaged in this memorandum of understanding is currently under development and produced at a rate of several tonnes per month.
“This agreement is important to the Company because it provides proven, commercial-grade LFP production technology and marketing into the specialty LFP CAM products segment of the market,” said CEO John Passalacqua. “We are building our entry into LFP CAM production in a careful and systematic manner. Access to diverse LFP production technologies reduces our technology risk and allows us to diversify our exposure to the industry by catering to diverse markets and diverse customer needs. clients.”
“We are excited to work with First Phosphate to grow the lithium battery supply chain in North America,” said Dr. Johnnie Stoker, CEO of Ultion. “With its secure source of high purity ore and commitment to developing downstream processing of cathode active materials, First Phosphate will become a key player in the LFP/LFMP supply chain. It is essential that these materials are manufactured in our region.
The terms of the agreement between the parties include:
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Ultion will grant First Phosphate a fully paid, royalty-free perpetual license to transfer LFP CAM production technology.
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Ultion will transfer all necessary documents to First Phosphate to commercially implement the purchased LFP CAM technology (the “Technology Document Package”).
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A similar LFMP Technology Document Set will include all documents, technologies, and information like the LFP Technology Document Set. It will also include any equipment changes or modifications necessary to produce LFMPs with the same equipment specified for LFP production.
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Ultion will also provide the following services to First Phosphate under certain conditions: equipment acquisition and installation, technical support, equipment design, start-up and personnel training.
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First Phosphate may purchase one or both technologies and pay an additional fee to obtain an exclusive right to the LFMP technology for the North American market.
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First Phosphate will aim to supply Ultion with up to 2,000 tonnes per year of CAM LFP for its specialty product LFP battery cell manufacturing business. Ultion plans to start production in 2025, requiring up to 500 tonnes of LFP CAM, and to reach full production requiring up to 2,000 tonnes by 2029.
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Other cell production partners and facilities related to Ultion’s expansion are also expected to use First Phosphate’s LFP as recommended. Each additional facility is expected to achieve an annual consumption of at least 2,000 tonnes of CAM LFP/LFMP by 2030. Ultion is currently considering at least two additional production partner facilities.
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This Memorandum of Understanding will be effective on the date of signing and will remain in effect until the parties enter into a final written agreement or 365 days, whichever occurs first.
This MOU with Ultion together with the MOU with American Battery Factory signed on September 13, 2023 provides First Phosphate with a minimum total offtake potential of 46,000 tonnes of LFP CAM, which will be realized slowly from 2026 and will increase by 2028/2029.
About First Phosphate Corp.
First Phosphate is a mining development company dedicated entirely to the extraction and purification of phosphate for the production of cathode active material for the lithium iron phosphate (“LFP”) battery industry. First Phosphate is committed to producing at a high level of purity, responsibly and with an anticipated low carbon footprint. First Phosphate plans to vertically integrate from the mining source directly into the supply chains of major North American LFP battery producers who need battery-grade LFP cathode active material from a mining source. consistent and secure supply. First Phosphate holds over 1,500 km² of district-wide royalty-free land claims in the Saguenay-Lac-St-Jean region of Quebec, Canada, which it is actively developing. The primary properties of phosphate consist of a rare anorthosite igneous phosphate rock that typically produces high purity phosphate material devoid of high concentrations of harmful elements.
About Ultion Technologies
Ultion is a privately held US-based company focused on the development and commercialization of battery materials, cells and packs in North America. Members of Ultion’s technical and operational teams have played an essential role in the marketing and production of lithium-ion materials, cells and packs, particularly based on LFP, for more than 20 years. Ultion has developed and/or acquired valuable technology and know-how for the production of cathode active materials (CAMs), including LFP and LFMP. Ultion plans to expand its operations in North America with its first lithium-ion cell and pack production facility by 2025. The initial facility will be capable of producing up to 1 GWh of cells and Ultion is exploring production additional cells and packs at several sites across the country. United States, Canada and Mexico.
For more information, please contact:
Jérôme Cliche, vice-president, business development
[email protected]
Tel: +1 (514) 815-8799
Investor Relations:
[email protected]
Media Relations:
[email protected]
Website:
www.FirstPhosphate.com
Follow First Phosphate:
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https://twitter.com/FirstPhosphate
LinkedIn:
https://www.linkedin.com/company/first-phosphate
Forward-Looking Information and Cautions
Certain information contained in this press release constitutes forward-looking statements under applicable securities laws. All statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these similar terms and expressions. Forward-looking statements contained in this press release include statements relating to: the Company’s belief that Quebec igneous anorthosite phosphate rock is an untapped source of high purity phosphate that can potentially be mined and processed into large quantities of purified phosphoric acid (PPA) to serve the North. America’s need to produce LFP cathode active material to meet electrification goals; and the plans and objectives of the Company with respect to changes in laws and legislation, the stated benefits and the timing thereof.
The forward-looking information contained in this press release is based on certain assumptions and expected future events, namely: the Company’s ability to integrate directly into the functions of certain large North American LFP battery producers; the ability of the Company to develop its territorial claims in the Saguenay-Lac-St-Jean region, Quebec; the Company’s ability to carry out its plans to develop an LFP CAM manufacturing activity in North America; and the Company having the ability to realize potential agreements with governmental and other entities, the potential development of partnerships, relationships and customers, as well as the declared benefits resulting therefrom; and the ability of the Company to achieve plans and objectives with respect to changes in laws and legislations, declared benefits and within the expected timeframes.
These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including, but not limited to, limit: the inability of the Company to directly integrate into the functions of certain large North American producers of LFP batteries; the Company’s inability to develop its territorial claims in the Saguenay-Lac-St-Jean region, Quebec; the Company’s inability to carry out its plans to develop an LFP CAM manufacturing activity in North America; the Company’s inability to consummate potential agreements with governmental and other entities, the potential development of partnerships, relationships and customers, and the stated benefits resulting therefrom; and the Company’s failure to achieve plans and objectives with respect to changes in laws and legislations, stated benefits and within the expected timeframes.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations on which they are based will be realized. This information, although considered reasonable by management at the time of its preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
The forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company’s expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise, or to explain any material differences between events subsequent actual results and such forward-looking information. unless required by applicable law.
The issuer is solely responsible for the content of this announcement.
