First Phosphate (CSE: PHOS; OTC: FRSPF) has signed a memorandum of understanding (MOU) with Lithium Australia (ASX: LIT) for the potential development of a lithium iron phosphate (LFP) and lithium manganese iron phosphate (LMFP) cathode active material manufacturing plant in North America or Queensland, Australia.
The agreement provides for the advancement of development and funding discussions for a 250 to 500 t/y LFP/LMFP demonstration plant based on technology from Lithium Australia. The two companies would then create a joint venture for a full-scale commercial plant of 25,000 t/y. Offtake agreements will be pursued. The deal also covers purified phosphoric acid production by First Phosphate. The term of the MOU is for two years.
Lithium Australia operates Australia's market-leading battery recycler, produces LFP, and has developed a patented lithium extraction technology. The company’s recycling business and technologies provide diversification benefits to global supply chains.
First Phosphate holds over 1,500 km2 of royalty-free claims that the company is developing in the Saguenay-Lac-St-Jean region of Quebec. The properties consist of rare anorthosite igneous phosphate rock that generally yields high purity phosphate devoid of high concentrations of harmful elements.
Learn more on www.FirstPhosphate.com.