First Phosphate Corp. (CSE: PHOS) (OTC: FRSPF) (FSE: KD0) is pleased to announce that it has signed a memorandum of understanding with Lithium Australia Limited (ASX: LIT) for the potential development of a lithium iron phosphate and lithium manganese iron phosphate cathode active material manufacturing plant in North America.

LIT has developed proprietary technology to produce LFP / LMFP CAM through its wholly owned subsidiary VSPC Pty Ltd  LIT is seeking a partner to support the commercialization of its LFP / LMFP technology through the development, construction and operation of a demonstration plant and an eventual commercial scale manufacturing facility.

“This agreement could provide First Phosphate with an important technology avenue for the production of LFP CAM for certain clients of LIT and the Company as well as serve as an important offtake for the Company’s future purified phosphoric acid production,” says Company CEO, John Passalacqua. “The potential spodumene offtake that could be contributed into the agreement could eventually provide the Company with access to an important element necessary in the manufacture of LFP / LMFP CAM.”

The terms of the agreement include:

• LIT to provide samples of LFP and LMFP to First Phosphate to enable CAM pre-qualification for First Phosphate potential clients.

• Facilitation of LFP / LMFP CAM offtake discussions for LIT and First Phosphate potential clients.

• Provision to LIT by First Phosphate of PPA samples for suitability in the production of LFP and LMFP CAM.

• Agreement on PPA offtake for the Demo Plant and Commercial Plant.

• Advancement of joint development and funding discussions for a 250-500 tonne per annum (“tpa”) LFP / LMFP Demo Plant based on LIT LFP / LMFP production technology.

• Agreement on a joint development agreement (“JDA”) and associated funding by LIT for the development of a full scale commercial plant of 25,000 tpa or greater to serve LIT and FPC potential offtake clients.

• The locating of the Demo Plant and Commercial Plant either in Queensland, Australia or in North America.

LIT has a conditional first right of refusal for offtake of up to 30% of spodumene produced by the Lake Johnston Lithium Project. If a JDA is established, LIT’s Spodumene Offtake may be accessed to provide lithium units in favour of the JDA. The Lake Johnston Lithium Project is a prospective lithium exploration opportunity located 450km east of Perth, Western Australia owned by Charger Metals NL (ASX: CHR) and Rio Tinto Limited (ASX: RIO) (LON: RIO).

The term of the MOU is two years commencing on the date of signing, or such later date as is agreed in writing between the parties.

About First Phosphate Corp.

First Phosphate is a mineral development company fully dedicated to extracting and purifying phosphate for the production of cathode active material for the Lithium Iron Phosphate battery industry. First Phosphate is committed to producing at high purity level, in responsible manner and with low anticipated carbon footprint. First Phosphate plans to vertically integrate from mine source directly into the supply chains of major North American LFP battery producers that require battery grade LFP cathode active material emanating from a consistent and secure supply source. First Phosphate holds over 1,500 sq. km of royalty-free district-scale land claims in the Saguenay-Lac-St-Jean Region of Quebec, Canada that it is actively developing. First Phosphate properties consist of rare anorthosite igneous phosphate rock that generally yields high purity phosphate material devoid of high concentrations of harmful elements.

About Lithium Australia

Lithium Australia is aiming to lead and enable the global transition to sustainable lithium production. The Company operates Australia’s market leading battery recycler, produces critical battery material lithium ferro phosphate and has developed a patented lithium extraction technology. Lithium Australia’s revenue-generating recycling business and technologies are well-placed to capitalise on growing global lithium-ion battery demand and provides diversification benefits to global supply chains.