AMERICAN BATTERY FACTORY AND FIRST PHOSPHATE SIGN MOU TO ONSHORE MORE THAN 40,000 TONS OF ANNUAL LFP CATHODE ACTIVE MATERIAL PRODUCTION IN NORTH AMERICA

Rhea-AI Summary

American Battery Factory Inc. and First Phosphate Corp. have signed an agreement to support the production of more than 40,000 tons of annual lithium iron phosphate (LFP) cathode active material (CAM) in North America. The agreement has an annual monetary value of between $500 million to $1 billion at future raw material prices. This initiative aims to bring production of LFP batteries for the battery storage sector to North America.

Positive

• American Battery Factory Inc. and First Phosphate Corp. have entered into an agreement to support the production of more than 40,000 tons of annual LFP cathode active material in North America.
• The agreement has an annual monetary value of between $500 million to $1 billion at future raw material prices.

Negative

• None.

Lithium iron phosphate cathode active materials offer the highest energy density, thermal stability and cost-effectiveness

AMERICAN FORK, Utah, Sept. 19, 2023 /PRNewswire/ -- American Battery Factory Inc. (ABF), an emerging battery manufacturer leading the development of the first network of lithium iron phosphate (LFP) battery cell gigafactories in the United States, today announced that it has entered into an agreement with First Phosphate Corp. (CSE PHOS) (OTC Pink: FRSPF) (FSE: KD0) to support the production of more than 40,000 tons of annual fully North American manufactured lithium iron phosphate (LFP) cathode active material (CAM).

The agreement contemplates production of LFP CAM with an annual monetary value of between $500 million to $1 billion at future raw material prices. The initiative aims to bring production of LFP batteries for the battery storage sector to North America.

The following mutually beneficial arrangements have been agreed:

1. First Phosphate and ABF are to co-operate to source an established LFP technology partner to work with the companies to service ABF's LFP CAM production needs in North America.  First Phosphate is to source and supply local raw materials and manage logistics for the LFP CAM production process and is to work on close integration into ABF workflows.
2. ABF projects sustained annual demand for LFP CAM starting in 2026 and achieving up to 40,000 tons of annual LFP CAM requirement by 2028 at its first planned LFP battery manufacturing facility in Tucson, Arizona.
3. ABF intends to construct several other LFP battery manufacturing facilities across North America, each of which should require similar amount of LFP CAM.  As plans for such additional sites are developed, ABF will work with First Phosphate on updating demand forecasts.
4. ABF and First Phosphate are to begin a homologation process whereby First Phosphate raw materials are to be integrated directly into LFP CAM produced for ABF.  LFP CAM produced by way of the partnership is to be integrated into ABF battery cells and end-user energy storage products.
5. First Phosphate and ABF intend to cooperate in the development of an LFP battery ecosystem in North America and to consider the possibility of locating certain facilities at the Port of Saguenay, Quebec.

"Raw material bottlenecks, not technology, will be the single largest impediments to the roll out of fully localized LFP batteries in North America," says John Kem, president of ABF. "We lean to a sustainable raw materials development partner like First Phosphate that is fully committed to the LFP battery industry as we focus to on-shore our full production of LFP batteries in North America."

"Stationary energy storage and telecom applications are already an established market application for LFP batteries in North America alongside the rapidly expanding electric vehicle sector," says John Passalacqua, CEO of First Phosphate. "Launching our LFP raw materials strategy with a focused partner like ABF with existing LFP product demand in North America allows us to enter the market in prudent and pragmatic fashion."

First Phosphate has access to clean igneous anorthosite phosphate-bearing rock in Quebec, Canada that it intends to purify into a large quantity of battery-grade purified phosphoric acid ("PPA").

AMERICAN BATTERY FACTORY
American Battery Factory Inc., a Lithium Iron Phosphate (LFP) battery cell manufacturer, is developing the first-ever network of safe LFP cell giga-factories in the United States. The company is dedicated to making energy independence and renewable energy a reality for the United States by creating a domestic battery supply chain. Along with creating domestic manufacturing jobs, ABF will play a crucial role in meeting federal and state government climate change initiatives and "Made-in-USA" national security requirements. For more information on American Battery Factory, please visit www.americanbatteryfactory.com.

FIRST PHOSPHATE CORP.
First Phosphate is a mineral development company fully dedicated to extracting and purifying phosphate for the production of cathode active material for the Lithium Iron Phosphate ("LFP") battery industry. First Phosphate is committed to producing at high purity level, in responsible manner and with low anticipated carbon footprint. First Phosphate plans to vertically integrate from mine source directly into the supply chains of major North American LFP battery producers that require battery grade LFP cathode active material emanating from a consistent and secure supply source. First Phosphate holds over 1,500 sq. km of royalty-free district-scale land claims in the Saguenay–Lac-St-Jean Region of Quebec, Canada that it is actively developing. First Phosphate properties consist of rare anorthosite igneous phosphate rock that generally yields high purity phosphate material devoid of high concentrations of harmful elements. For more information on First Phosphate, please visit www.firstphosphate.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/american-battery-factory-and-first-phosphate-sign-mou-to-onshore-more-than-40-000-tons-of-annual-lfp-cathode-active-material-production-in-north-america-301931952.html

SOURCE American Battery Factory