- First Phosphate (CSE:PHOS) has signed a memorandum of understanding with Lithium Australia Ltd. (ASX:LIT) to develop a lithium commercial plant
- The two intend to develop a lithium iron phosphate and lithium manganese iron phosphate cathode active material manufacturing plant in North America
- Lithium Australia is seeking a partner to support the commercialization of its lithium iron phosphate and lithium manganese iron phosphate cathode active material manufacturing technology
- First Phosphate stock opened trading at $0.35 per share and Lithium Australia opened at $0.01 per share
First Phosphate (CSE:PHOS) has signed a memorandum of understanding with Lithium Australia Ltd. (ASX:LIT) to develop a lithium commercial plant.
The two intend to develop a lithium iron phosphate and lithium manganese iron phosphate cathode active material manufacturing plant in North America.
Lithium Australia has developed proprietary technology to produce lithium iron phosphate and lithium manganese iron phosphate cathode active material through its wholly owned subsidiary VSPC Pty Ltd.
Lithium Australia is seeking a partner to support the commercialization of its lithium iron phosphate and lithium manganese iron phosphate cathode active material manufacturing technology through the development, construction and operation of a demonstration plant and an eventual commercial scale manufacturing facility.
Samples of lithium iron phosphate and lithium manganese iron phosphate will be provided from Lithium Australia to First Phosphate to enable cathode active material pre-qualification for First Phosphate potential clients.
Advancement of joint development and funding discussions for a 250-500 tonne per annum lithium iron phosphate and lithium manganese iron phosphate demo plant.
The two have come to terms on a joint development agreement to develop a full-scale commercial plant of 25,000 tonnes per annum or greater to serve potential offtake clients of both companies.
“This agreement could provide First Phosphate with an important technology avenue for the production of lithium iron phosphate cathode active material for certain clients of Lithium Australia and our company as well as serve as an important offtake for our company’s future purified phosphoric acid production,” First Phosphate’s CEO, John Passalacqua, said in a news release. “The potential spodumene offtake that could be contributed into the agreement could eventually provide the company with access to an important element necessary in the manufacture of lithium iron phosphate/lithium manganese iron phosphate cathode active material.”
Lithium Australia has a conditional first right of refusal for offtake of up to 30 per cent of spodumene produced by the Lake Johnston Lithium Project.
Lithium Australia operates a battery recycler, produces critical battery material lithium ferro phosphate, and has developed a patented lithium extraction technology.
First Phosphate is a mineral development company focused on extracting and purifying low-carbon phosphate for the lithium iron phosphate battery industry. The company is actively developing over 1,500 square kilometres of royalty-free district-scale land claims in Québec.
First Phosphate stock opened 2.5 per cent higher, trading at $0.35 per share and has gained 30.5 per cent over the past month. Lithium Australia opened 12 per cent lower to trade at $0.01 per share.
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