Arianne Phosphate Has Capacity To Meet Growing Demand As Electric Vehicles Transition To Lithium Iron Phosphate Batteries

The world of electric vehicles (EVs) is fraught with controversial opinions; companies and consumers alike have all but waged war over how to make the best battery possible. For decades, companies — specifically North American companies — placed their bets on lithium-ion batteries, which rely heavily on lithium, cobalt, and nickel resources. 

However, cobalt and nickel are scarce, expensive and controversial raw elements to mine — in part due to the high human costs involved.

As such, due to factors ranging from supply chain concerns to cost and efficiency considerations, engineers and companies are now transitioning away from lithium-ion batteries with cobalt and nickel in favor of lithium iron phosphate batteries (LFP). 

According to a recent research report by Wood Mackenzie Power & Renewables, lithium iron phosphate is on course to be the leading battery chemistry for EVs by 2028, replacing their cobalt and nickel-based lithium-ion predecessor. LFPs are safer, less expensive than alternatives, and last longer. LFPs also require less lithium. 

But in the current geopolitical context, raw material supply concerns are a key consideration.

Raw Materials — Where They Come From And The Concerns For American Companies

China has long been investing in the LFP market; today, 44% of EVs sold in China use LFP batteries compared to 3% in the U.S. and Canada. Other countries and companies are now starting to take notice and beginning investment in the LFP industry.

Some carmakers are developing and producing cobalt-free batteries; in fact, many companies such as Tesla Inc. TSLA are shifting away from lithium-ion batteries that combined materials like cobalt, nickel, and manganese in favor of LFPs. But North American companies, including Tesla, are hesitant to rely heavily on Chinese, Middle Eastern, and North African phosphate.

China is currently the largest exporter of phosphate fertilizer, with Russia not far behind. The largest phosphate concentrate reserves are in Morocco followed by other Middle Eastern and North African countries. China and Russia have recently suspended or minimized the exports of phosphate, which is proving problematic to the supply chain and for manufacturers relying on Chinese phosphate. Similarly, the phosphate concentrates in the Middle East and North Africa (MENA) are dependent on geopolitical stability that is often fluctuating. 

When considering all of these factors, North American carmakers are eager to find a phosphate supply that is stable, high quality and closer to home.

Canadian Arianne Phosphate Says It Has The Answer

Arianne Phosphate Inc. DRRSF is one of the promising phosphate mining companies that can help meet the growing demand for phosphate for EVs. The company’s Lac à Paul project is a response to the growing global demand for phosphate, which is increasing by 2% to 3% each year.

Two things set Arianne’s Lac à Paul project in Quebec apart from Chinese and MENA competitors. First, the mine is made up of igneous deposits that produce a concentration higher than 90% of the world’s phosphate, which is housed in sedimentary rock. Second, the Canada-based company adheres to stricter environmental, social and corporate standards, aligning with North American and European agendas. 

As European and North American companies pivot away from their overdependence on Chinese and MENA suppliers, Arianne Phosphate seems to be well-positioned to fill the supply gap. 

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Featured photo by Artyom Korshunov on Unsplash