By Faith Ashmore, Benzinga
Lithium iron phosphate (LFP) batteries are gaining traction in the electric vehicle industry, both in the United States and globally. These batteries offer a lower-cost alternative to the nickel cobalt manganese cells commonly used in electric vehicles. These batteries are different from other compositions, such as lithium-ion, due to the unique properties of iron phosphate as the cathode material.
Recognizing the potential of LFP technology, major companies worldwide have pledged over $11 billion to establish future manufacturing facilities for LFP batteries in the United States. Large companies like Tesla (NASDAQ: TSLA) and Rivian (NASDAQ: RIVN) that have a history of electrification are investing in LFP battery production. Unlike some other compositions that may contain cobalt, nickel, or manganese, lithium iron phosphate batteries are cobalt-free and possess a lower environmental impact.
Ford (NYSE: F) has also announced its intention to incorporate LFPs into various models, including the popular Mustang Mach-E, beginning this year. To support this initiative, Ford plans to establish a new production plant specifically dedicated to LFP battery manufacturing in Michigan by 2026. This significant milestone would make Ford the first automaker in the United States to have its own LFP battery facility.
However, analysts caution that many battery suppliers and automakers may not be adequately securing their supply of the 'p' in LFPs – phosphate – potentially leaving them susceptible to supply risk in the long run. This exposure to risk highlights the need for more investment in LFP technology and the broader battery supply chain to ensure a secure and sustainable production of electric vehicles through stable access to necessary materials For example, earlier this year General Motors (NYSE: GM) invested $650 million in a lithium company to help support its battery production for electric vehicles, but did not make a similar investment in phosphate. It seems likely companies not currently investing in phosphate may look for a reliable phosphate supply in the future.
Arianne Phosphate Inc. (OTCMKTS: DRRSF) is a promising phosphate mining company located in Quebec, Canada. 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 in terms of agricultural demand and will be considerably higher when LFP batteries are taken into account. The Lac à Paul project is a fully permitted, shovel-ready project.
Arianne’s is a world-class mining site and is the single largest greenfield deposit of phosphate. One major edge Arianne has is that the deposit is igneous which allows it to produce a concentrate higher than 90% of the world’s phosphate, which is housed in sedimentary rock. This allows Arianne to produce a high-purity and low-contaminant phosphate concentrate ideal for use in batteries and fertilizer.
But beyond quality phosphate, Arianne also boasts strong community support and adheres to stricter environmental, social and governance standards. For North American companies that want their suppliers to align with their agendas, Arianne is a perfect partner.
The growing interest from large companies highlights the increasing importance of LFP batteries in the electric vehicle industry. The reliability and suitability of LFP technology make it an attractive choice for powering electric cars, leading to their wider adoption and supporting the global transition towards sustainable transportation – and Arianne Phosphate seems well-positioned to be a reliable phosphate supplier for companies that are ramping up LFP battery production.
ARIANNE PHOSPHATE INC. (www.arianne-inc.com) owns the Lac à Paul phosphate deposit in Quebec, Canada. Fully permitted and shovel ready, the asset is among the world’s largest greenfield deposits, capable of producing an environmentally friendly phosphate concentrate. Due to the nature of its high-purity, low-contaminant product, Arianne’s phosphate can be used to produce fertilizer as well as meeting the technical requirements of specialty applications such as the lithium-iron-phosphate (LFP) battery. The Lac à Paul deposit is rare due to its geographic location and geological structure. Arianne Phosphate is listed on both the TSX-V: DAN and the OTCQX: DRRSF.
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This information contains forward looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralisation and reserves, exploration results and future plans and objectives of Arianne Phosphate Inc, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Arianne Phosphate Inc’s (“Arianne Phosphate” or the “Company”) expectations are disclosed under the heading "Risk Factors" and elsewhere in Arianne Phosphate Inc’s documents filed from time-to-time with the TSX Venture and other regulatory authorities.
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