Canadian government underwrites phosphate feasibility study

First Phosphate Corp. says that it has finalised an agreement for a C$16.7 million non-repayable contribution from the Government of Canada via Natural Resources Canada’s Global Partnerships Initiative. The company says that the funding will accelerate the development of its phosphate project in Bégin-Lamarche by developing the technical and engineering parameters – including processing circuits and equipment – needed to validate the ability to produce a phosphate concentrate that meets the quality requirements of the lithium iron phosphate (LFP) battery market. The work will be conducted based on parameters established under the contract between First Phosphate and its definitive offtaker.

“Canada and our partners are putting real capital behind the secure and resilient critical mineral supply chains that our economies and defence industries rely on,” said Tim Hodgson, Canadian Minister of Energy and Natural Resources. “By supporting companies like First Phosphate, we are helping deliver the minerals the world needs and the prosperity and security Canadians deserve.”

“We welcome this investment from the Government of Canada which supports the continued progress of our project and its strategic role in the LFP battery supply chain,” said John Passalacqua, CEO of First Phosphate. “Together, we are taking another step toward establishing an integrated phosphate-based LFP battery supply chain in Canada.”

The Bégin-Lamarche demonstration and feasibility projects are part of a strategic plan by Canada to develop a domestic LFP battery value chain through the development of domestic capacity to process apatite (phosphate concentrate) into high-purity phosphoric acid.