First Phosphate Corp. (CSE: PHOS) (OTC: FRSPF) (FSE: KD0) and Sun Chemical Corporation are pleased to announce a non-binding memorandum of understanding for the development of intermediates used for the manufacture of lithium iron phosphate-based cathode active material to support the developing North American battery market.

Under this agreement, Sun Chemical will use its qualified North America facilities to manufacture iron phosphate using the phosphate material of First Phosphate and its partners.

Sun Chemical is a leading producer of inorganic pigments and is utilizing existing local factory capacity in North America and Europe to support the battery materials market. Co-precipitation based cathode materials are manufactured using the same processes, domain knowledge, and equipment as for inorganic pigments making this a natural fit.

Utilizing the network of both companies, the agreement will include the investigation of the best source of iron to use in the iron phosphate and lithium iron phosphate synthesis process with preferred consideration for Sun Chemical’s current manufacturing capabilities of iron oxide precursors and First Phosphate’s mining source recovery of magnetite.

Working together, Sun Chemical and First Phosphate may develop a multi-party U.S. Department of Energy grant application in conjunction with committed offtake that may come from First Phosphate prospective customers.

“This agreement is important to First Phosphate because Sun Chemical is a leading player in the global pigment industry. Much of the machinery used in the pigment industry is similar to that required for the production of iron phosphate and iron-oxide which are key intermediates for LFP CAM,” says CEO, John Passalacqua. “The processes, the attention to detail, the experience required is similar across both industries. Moreover, Sun Chemical also benefits from an extensive network of facilities and equipment across North America which should allow us to accelerate production of LFP CAM while benefiting from reduced outlay of capex. Sun Chemical is also a subsidiary of its globally recognized parent DIC Group (TYO: 4631) with global exposure to capital and technology.”

“Sun Chemical is pleased that First Phosphate will increase the North American supply of battery-quality phosphoric acid, a critical component of iron phosphate, and ultimately of lithium iron phosphate-based cathode materials. Sun Chemical is pleased to work with First Phosphate to qualify it for use in its developing battery materials portfolio,” says CTO, Russell Schwartz. “The expansion in cleaner energy from increased reliance on electronic vehicles and renewable energy will benefit from more accessible locally produced batteries. Any contributions Sun Chemical can make to accelerate this transformation will be consistent with our ongoing commitment to more sustainable technologies.”

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 (“LFP”) 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 Sun Chemical Corporation

Sun Chemical, a member of the DIC Group, is a leading producer of packaging and graphic solutions, color and display technologies, functional products, electronic materials, and products for the automotive and healthcare industries. Together with DIC, Sun Chemical is continuously working to promote and develop sustainable solutions to exceed customer expectations and better the world around us. With combined annual sales of more than $8.5 billion and 22,000+ employees worldwide, the DIC Group companies support a diverse collection of global customers.