First Phosphate (CSE:PHOS) signs MOU with Prayon for Quebec production plant

• First Phosphate (PHOS), has signed a memorandum of understanding (MOU) with Prayon SA of Engis for a potential offtake agreement around lithium battery work
• The MOU would accelerate First Phosphate’s integration plan for the North American lithium iron phosphate (LFP) battery industry
• Currently, First Phosphate is considering developing its own LFP battery-grade phosphoric acid production facility in Quebec
• Prayon may support the building of this facility by lending its manufacturing expertise
• First Phosphate (PHOS) is up 35.29 per cent, trading at $0.69 per share as of 12:27 p.m. EST

Mineral development company, First Phosphate (PHOS), has signed an MOU with Prayon SA of Engis, a Belgian purified phosphoric acid producer.

First Phosphate stated this MOU is to help accelerate its integration plan for the North American lithium iron phosphate (LFP) battery industry.

The parties are building a strategic relationship to support Europe and North America with more green energy and critical mineral independence. To do so, they will work with the Quebec, Canadian, United States, Walloon, Belgian and other relevant European governments.

First Phosphate President, Peter Kent, commented,

“The LFP battery already represents a leading globally accepted battery chemistry… Today’s announcement sows the seeds to onshore that production capacity in North America.”

MOU to support LFP production in Quebec

Under the MOU, First Phosphate and Prayon agreed to study a potential long-term offtake agreement. Reportedly, Prayon needs more phosphate concentrate and is looking at purchasing concentrate from First Phosphate’s future mining operations.

Currently, First Phosphate is considering developing its own LFP battery-grade phosphoric acid production facility In Quebec.

Additionally, the parties have agreed to discuss the requirements for a license for Prayon’s expertise in manufacturing merchant-grade and LFP-grade phosphoric acid. This would ultimately go towards allowing First Phosphate to establish its own facilities in Quebec.

The manufacturing will use Prayon’s “environmentally friendly, safe and solvent-less” processing technologies that could support full gypsum recycling.

First Phosphate (PHOS) is up 35.29 per cent, trading at $0.69 per share as of 12:27 p.m. EST.