Canada's Critical Minerals Trade Mission Shines Light On Demand For LFP Batteries, Need For Phosphate – Arianne Phosphate's Rare Geology Sparks Interest

Lithium-iron-phosphate or LFP batteries already make up about 30% of the battery market, and it’s still in the early days. It’s forecast to become the de facto battery in electric vehicles and storage systems in the years to come.  

That wasn’t lost on the battery producers and industry players that took part in Canada’s recent critical minerals trade mission in London and Paris. The trade mission, which included miners, producers, and recyclers, was focused on advancing the market for [LFP] batteries and preparing for future growth. The latter requires securing key minerals, including phosphate – which is why Arianne Phosphate Inc DRRSF, the developer out of Quebec, Canada, garnered attention from big corporations during the trade mission. With the LFP rapidly gaining traction, EV manufacturers are looking to source key minerals like phosphate required for their future LFP projects.  

The LFP as the Dominant Lithium-Ion Battery Chemistry? 

There are many reasons the industry is shifting to LFPs and away from other sorts of lithium-ion batteries that include elements beyond lithium such as cobalt and nickel. Cobalt and nickel are scarce, expensive and controversial. LFPs are not only cheaper, they are highly stable, long-lasting and more resistant to degradation from heat. On top of that they require less lithium. 

The LFP market is projected to exceed $50 billion by 2023. And, in a recent report, Wood Mackenzie predicted that lithium iron phosphate will become the leading battery chemistry for EVs by 2028.

China has long been the dominant manufacturer of batteries for EVs, from the mining of raw materials to final assembly. For LFPs, about 70% of the traded phosphate rock is sourced from the Middle East and Northern Africa. Companies trying to break free of China’s hold and/or wanting a more stable provider have been looking for new sources of minerals and as a result, were keen to talk with Arianne at the recent trade mission. 

 “As in North America, many of these companies are looking to lessen their dependence on China for these necessary materials and view Canada as the natural destination for their requirements,” said Brian Ostroff, president of Arianne Phosphate. “I will say there was a strong awareness that the LFP is a technology going forward and already represents over 30% of all batteries. If even modest growth curves are to be met, the supply of purified phosphoric acid (the ingredient in the LFP) will need to more than double in the coming years.” 

Ostroff said companies that met with Arianne were interested in its rare geology, which sets it apart from other phosphate miners. Its Lac à Paul project in Quebec is an igneous deposit, which allows the company to produce a phosphate concentrate that is considerably richer and purer since it is void of many of the deleterious elements often found in sedimentary phosphate deposits. Arianne’s mine will also adhere to strict environmental, social and corporate standards, which is necessary on the part of Western companies as they look to their suppliers to be ESG compliant.  

Shovel Ready 

Arianne reports that the mine is located in a tier 1 mining jurisdiction, is fully permitted and construction-ready, has excellent access to infrastructure and has undergone significant improvement since its original Feasibility Study in 2013. The mine has received all its major permits to commence construction, has a social license to operate and has a long-standing commitment to environmental best practices – all of which is what much of the EV market craves.

Arianne expects the project will create 1,000 jobs during operation and contribute well over $12 billion in economic benefits to the region. “Of particular interest at these meetings was Arianne’s rare geology that allows it to produce a phosphate ideally targeted for the LFP battery, our geopolitically safe location (Quebec, Canada) and the fact that we are fully permitted and shovel ready,” said Ostroff. 

EV manufacturers continue to adopt the LFP as they seek cheaper, greener, safer and more stable alternatives. LFPs seem to be taking center stage and judging from the interest in Arianne at the recent trade mission, so is this Canadian miner. 

Featured photo courtesy of Arianne Phosphate.

This post contains sponsored content. This content is for informational purposes only and not intended to be investing advice.