First Phosphate and Ultion Technologies Enter MOU for Purchase of LFP / LFMP Commercial Production Technology and Offtake of 6,000 annual Tonnes of LFP Cathode Active Material for Specialty Products
- Written by Reporters
Saguenay, Quebec - Newsfile Corp. - 11 December 2023 - First Phosphate Corp. (CSE PHOS) (OTC: FRSPF) (FSE: KD0) ("First Phosphate" or the "Company") is pleased to announce that it has signed a memorandum of understanding ("MOU") with Ultion Technologies Inc ("Ultion") of Las Vegas, Nevada for the purchase of a non-exclusive, perpetual license to technology for the production of lithium iron phosphate ("LFP") and lithium iron manganese phosphate ("LFMP") cathode active material ("CAM"). The LFP technology contemplated by this MOU is currently in production in two facilities, one with 10,000 tonnes per annum of capacity and one with 50,000 tonnes per annum of capacity. The market value of 50,000 tonnes of LFP CAM can be estimated from USD $625,000,000 to USD $1,250,000,000 based on recent market price ranges. The LFMP technology contemplated in this MOU is currently under development and being produced at a quantity of several tonnes per month. "The agreement is important to the Company because it provides proven, commercial-grade LFP production technology as well as offtake into the LFP CAM specialty products segment of the market," says CEO John Passalacqua. "We are building our entry into LFP CAM production in careful and systematic manner. Access to various LFP production technologies reduces our technology risk and allows us to diversify industry exposure by servicing various markets and various client needs." "We are excited to be working with First Phosphate in developing the lithium battery supply chain in North America," said Dr. Johnnie Stoker, CEO of Ultion. "With their secure source of high purity ore and commitment to develop downstream processing of Cathode Active Materials, First Phosphate will become a key player in the LFP/LFMP supply chain. It is critical that these materials be made in our region." The terms of the agreement between the parties include:
- Ultion shall grant a fully paid, royalty-free perpetual license to First Phosphate for the transfer of the LFP CAM production technology.
- Ultion shall transfer all documents necessary for First Phosphate to implement the purchased LFP CAM technology commercially, (The "Technology Document Package").
- A similar LFMP Technology Document Package will include all documents, technology and information as the LFP Technology Document Package. It will also include any equipment changes or modifications that are required to produce LFMP with the same equipment as specified for LFP production.
- Ultion will also provide the following services to First Phosphate under certain conditions: equipment acquisition and installation, engineering support, equipment design, start up, and personnel training.
- First Phosphate may purchase one or both technologies as well as pay an additional fee to secure an exclusive right to the LFMP technology for the North American market.
- First Phosphate shall work to provide Ultion with up to 2,000 tonnes per annum of LFP CAM for its LFP battery cell manufacturing business for specialty products. Ultion is planning on beginning production in 2025 which will need up to 500 tonnes of LFP CAM and will ramp up to full production requiring up to 2,000 tonnes by 2029.
- Additional cell production partners and facilities related to Ultion's expansion are also expected to use First Phosphate's LFP as recommended. Each additional facility is expected to ramp up to at least 2,000 tonnes per year LFP/LFMP CAM consumption by 2030. There are at least two additional production partner facilities being contemplated by Ultion at this time.
- This MOU shall be effective as of the date of signature and shall remain in effect until The Parties enter into a definitive, written agreement or 365 days, whichever comes first.
The issuer is solely responsible for the content of this announcement.
Source https://www.media-outreach.com/news/canada/2023/12/11/266898/