First Phosphate Receives Conditional Approval for up to $16.7 Million Non-Repayable Contribution from the Government of Canada

Executive Summary

• First Phosphate Corp. received conditional approval for a non‑repayable contribution agreement of up to C$16.7 million from the Government of Canada (Natural Resources Canada) under the Global Partnerships Initiative.
• The funding will support technical and engineering studies to validate production of battery‑grade phosphate concentrate for lithium‑iron‑phosphate (LFP) batteries, covering activities through 2028.
• The contribution is intended to strengthen Canada’s strategic position in the LFP battery value chain, create skilled jobs, and potentially enable a domestic phosphoric acid facility.

Key Details

• Contribution Amount: Up to C$16.7 million (non‑repayable).
• Funding Source: Government of Canada – Natural Resources Canada (NRCan) via the Global Partnerships Initiative (GPI).
• Purpose: Assess technical and engineering parameters—including processing circuits and equipment—required to produce phosphate concentrate meeting LFP battery quality standards.
• Scope of Work:
• Validation of LFP application requirements and offtaker expectations.
• Development of a scalable Canadian process for battery‑grade phosphate concentrate.
• Study of the integrated phosphate concentrate project at the Bégin‑Lamarche property in Saguenay‑Lac‑Saint‑Jean, Québec.
• Timeline: Eligible activities funded through 2028 under the terms of the agreement.
• Strategic Impact: Aims to reduce reliance on foreign supply chains, create skilled employment, and lay groundwork for a Canadian phosphoric acid production facility supporting domestic battery manufacturing.
• Quotes:
• “Canada and our partners are putting real capital behind the secure and resilient critical mineral supply chains…,” – The Honourable Tim Hodgson, Minister of Energy and Natural Resources.
• “This financial support … represents an important lever for the continuation of our development work,” – Armand MacKenzie, President, First Phosphate.

Notable Quotes

• Tim Hodgson (Minister of Energy and Natural Resources): “By supporting companies like First Phosphate, we are helping deliver the minerals the world needs and the prosperity and security Canadians deserve.”
• Armand MacKenzie (President, First Phosphate): “This contribution enables us to carry out detailed work aimed at validating LFP application requirements and the expectations of our offtakers and international partners.”