First Phosphate links volatility to China export news

Executive Summary

• First Phosphate Corp. issued a statement addressing recent volatility and increased trading volume in its common shares, attributing the activity to new Chinese export controls on critical materials like lithium iron phosphate (LFP) cathode active materials.
• The company highlighted its strategic position in onshoring the LFP battery supply chain in North America, noting the production of commercial-grade LFP 18650 battery cells using minerals from its Begin-Lamarche property in Quebec.
• A recent white paper regarding the North American phosphate supply for LFP materials received a "Met" rating from the Defense Industrial Base Consortium, emphasizing the national defense importance of domestic phosphate sources.

Key Details

• Market Context: The release cites China's Ministry of Commerce Notice No. 55-62, announcing unilateral export controls on rare earths and processed critical materials (including LFP CAM) effective November 8, 2025.
• Company Response: First Phosphate attributes recent share price volatility and volume spikes to market reactions to these export controls, which impact industries including energy storage, AI data centers, robotics, mobility, defense, and electric vehicles.
• Operational Milestone: The company states it has produced "perhaps the first-ever commercial-grade LFP 18650 battery cells" using North American critical minerals.
• Source Material: The high-purity phosphoric acid and iron powder for these cells were derived from rare igneous anorthosite rock extracted from the Begin-Lamarche property in the Saguenay-Lac-Saint-Jean region of Quebec, Canada.
• Regulatory/Strategic Recognition: A white paper titled "Securing North American Phosphate Supply for LFP Cathode Materials" received a "Met" rating from the Defense Industrial Base Consortium.
• Strategic Outlook: First Phosphate intends to accelerate its mine-to-market LFP battery supply chain strategy targeting markets in energy storage, data centers, robotics, mobility, defense, and electric vehicles to reduce dependency on China.
• Technical Review: Scientific and technical information was reviewed by Gilles Laverdiere, PGeo, Chief Geologist and Qualified Person under National Instrument 43-101.