Is This The Most Important Mineral?

Dear Investor,

The Missing Piece of North America’s Battery Supply Chain?

Rare earth stocks are moving again. The catalyst this time? China’s latest round of export restrictions on strategic minerals, combined with a full 100 percent tariff response from the United States. The minerals powering energy storage, data centers, AI infrastructure and electric vehicles, just got a lot more expensive to source from overseas.

As the headlines focus on MP Materials and USA Rare Earth, one under-the-radar company quietly posted its biggest week of trading volume to date. And if you believe in the future of energy independence and AI growth in North America, you’ll want to know what First Phosphate (CSE: PHOS | OTCQX: FRSPF) is building.

Because this company may have just pulled off something no other player in the West has done.

Why Phosphate Just Became One of the Most Important Battery Inputs in the World

LFP batteries are now the dominant chemistry in the global battery market. That stands for lithium iron phosphate, and it’s what powers everything from electric vehicles to grid-scale energy storage systems to robotics. Tesla uses it. AI data centers are adopting it. And most military drone platforms are now built around it.

The problem is that these batteries rely on LFP cathode active material as a core ingredient. And almost all of it comes from China.

In fact, most people don’t realize that phosphate itself is now a bottleneck in the Western energy transition. Not because we don’t have rock, but because the kind we have is mostly low-grade and full of impurities. It was designed for fertilizer, not batteries.

That’s where First Phosphate (CSE: PHOS | OTCQX: FRSPF) comes in. They are developing one of the highest-purity igneous phosphate deposits in North America. Igneous phosphate is rare. It converts cleanly into battery-grade phosphoric acid. And it avoids the environmental issues tied to sedimentary phosphate, which often contains heavy metals and radioactive material.

North America doesn’t just need more phosphate. It needs the right kind of phosphate. And First Phosphate might have the best option on the table.

The Company Overview: From Mining to Battery Cells

First Phosphate (CSE: PHOS | OTCQX: FRSPF) is based in Quebec, and they are doing a lot more than developing a mine.

In July 2025, the company announced it had successfully produced commercial-grade LFP 18650 battery cells using 100 percent North American critical minerals. That includes phosphate and iron from their own deposit in Quebec, lithium from a Nevada partner, and graphite from another Quebec producer. The battery cells were tested by Ultion Technologies in Las Vegas and showed stable performance, consistent discharge, and 80 percent capacity retention after 2,000 cycles.

This is a major milestone. No other company in the West has produced an LFP battery cell entirely from a domestic supply chain. It proves that this isn’t just a mining story. It’s an energy infrastructure play with upstream, midstream, and downstream potential.

At the heart of it all is their Bégin-Lamarche igneous phosphate property in the Saguenay–Lac-Saint-Jean region. The deposit is large, clean, and high-grade. Over 90 percent of their phosphate rock can be converted into purified phosphoric acid, which is almost unheard of. The project is royalty free, has a low strip ratio, and sits close to roads, rail, and port access.

But what really separates First Phosphate is the execution.

In just two years, they’ve completed multiple drill programs, delivered two mineral resource estimates, produced high-purity phosphoric acid at pilot scale, and manufactured commercial battery cells. They’ve signed agreements with major industry players like GKN Hoganas, Norfalco, Ultion and one of Europe’s largest producers of phosphoric acid. They’ve secured sulfuric acid supply, advanced land agreements with the Port of Saguenay, and locked in a letter of intent for up to 170 million US dollars in financing from EXIM Bank.

This is not a group with a slide deck and a dream. It’s a team that hits milestones.

CEO John Passalacqua brings decades of experience in early-stage technology and capital markets. The leadership team includes veteran engineers, experienced project developers, Indigenous legal experts, and battery industry insiders. This blend of mining and midstream talent is key to their model, because they are not building a traditional mining company. They are building a critical minerals company for the LFP era.

Supply Chain and Economies of Scale

First Phosphate (CSE: PHOS | OTCQX: FRSPF) is designing a fully integrated LFP materials business.

It starts with igneous phosphate rock, which is mined and concentrated on-site. That rock is processed into purified phosphoric acid, a highly specialized input that very few companies in the West produce. From there, the company moves into cathode active material production, creating the LFP powder used in battery cells. And finally, the company has already manufactured battery cells using its own materials, proving the full chain is technically viable.

This vertical model offers several advantages. It reduces exposure to foreign markets. It gives the company more pricing control. And it positions them as a domestic source of battery materials at a time when manufacturers are looking for supply chain certainty.

Their preliminary economic assessment outlines an operation that can produce 900,000 tonnes of concentrate per year at over 40 percent purity. That’s enough to support roughly 350 gigawatt hours of LFP battery capacity annually. If scaled properly, it could supply materials for half of North America’s EV market each year.

The economics are compelling. The project has a net present value of 2.1 billion Canadian dollars, with a 37 percent internal rate of return and a payback period under three years. It produces additional byproducts like magnetite and ilmenite, which can be used in cathode manufacturing and titanium markets. The mine life is projected at 23 years, and because the deposit is royalty free, more of that value stays in-house.  The deposit is also open at depth for future mine life.

The company also benefits from geography. Quebec has a strong regulatory framework, clean energy access, and a highly skilled workforce. The deposit is less than 70 kilometers from a deep-sea port, with no need to build out major new infrastructure. That makes development timelines shorter and capital costs lower.

Unlike many juniors that are tied to long permitting or infrastructure hurdles, First Phosphate is developing a mine that is logistically simple, technically de-risked, and backed by local government support as well as a full collaboration agreement with the local indigenous community.

Conclusion

Phosphate doesn’t usually lead investing conversations. But when it comes to LFP batteries, it is one of the most important minerals on the planet.  Without it, all the lithium out there remains landlocked.

And right now, China controls almost all of it.

First Phosphate (CSE: PHOS | OTCQX: FRSPF) is building something different. They are not just mining rock. They intend to be turning that rock into battery-grade acid, into cathode material, and into fully assembled battery cells  all from a North American base.

They’ve proven they can do it. They’ve done it faster than anyone expected. And they’re doing it at a time when governments and industries are desperate for domestic solutions.

The market hasn’t priced in what this means yet. But for anyone tracking the future of clean energy and energy security, this is a name worth watching.

Join First Phosphate’s exclusive investor list by clicking here:  website. 

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