DAN:CC - Canada’s Critical Minerals Trade Mission Shines Light On Demand For LFP Batteries Need For Phosphate – Arianne Phosphate’s Rare Geology Sparks Interest
(NewsDirect)
By Meg Flippin, Benzinga
Lithium-iron-phosphateor LFP batteries already make up about 30%of the battery market , and it’s still in the early days.It’s forecast to become the de facto battery in electric vehiclesand storage systems in the years to come.
That wasn’t lost on the battery producers and industryplayers that took part in Canada’s recent critical minerals trademission in London and Paris. The trade mission, which included miners,producers, and recyclers, was focused on advancing the market for[LFP] batteries and preparing for future growth. The latter requiressecuring key minerals, including phosphate – which is why AriannePhosphate Inc (OTCMKTS: DRRSF), the developer out of Quebec,Canada, garnered attention from big corporations during the trademission. With the LFP rapidly gaining traction, EV manufacturers arelooking to source key minerals like phosphate required for theirfuture LFP projects.
The LFP as the Dominant Lithium-IonBattery Chemistry?
There are many reasons the industry is shifting to LFPs andaway from other sorts of lithium-ion batteries that include elementsbeyond lithium such as cobalt and nickel. Cobalt and nickel arescarce, expensive and controversial .LFPs are not only cheaper, they are highly stable, long-lasting andmore resistant to degradation from heat. On top of that they requireless lithium.
TheLFP market is projectedto exceed $50 billion by 2023 . And, in a recent report, WoodMackenzie predicted that lithium iron phosphate will become the leadingbattery chemistry for EVs by 2028 .
China has long been the dominant manufacturerof batteries for EVs, from the mining of raw materials to finalassembly. For LFPs, about 70% of the traded phosphate rock is sourcedfrom the Middle East and Northern Africa. Companies trying to breakfree of China’s hold and/or wanting a more stable provider have beenlooking for new sources of minerals and as a result, were keen to talk withArianne at the recent trade mission.
“As in North America,many of these companies are looking to lessen their dependence onChina for these necessary materials and view Canada as the naturaldestination for their requirements,” said . “I willsay there was a strong awareness that the LFP is a technology goingforward and already represents over 30% of all batteries. If evenmodest growth curves are to be met, the supply of purified phosphoricacid (the ingredient in the LFP) will need to more than double in thecoming years.”
Ostroff saidcompanies that met with Arianne were interested in its rare geology,which sets it apart from other phosphate miners. Its Lac àPaul project in Quebec is an igneous deposit, which allows thecompany to produce a phosphate concentrate that is considerably richerand purer since it is void of many of the deleterious elements oftenfound in sedimentary phosphate deposits. Arianne’s mine will alsoadhere to strict environmental, social and corporate standards, whichis necessary on the part of Western companies as they look to theirsuppliers to be ESG compliant.
Shovel Ready
Arianne reports that themine is located in a tier 1 mining jurisdiction, isfully permitted and construction-ready, has excellent accessto infrastructure and has undergone significant improvement since itsoriginal Feasibility Study in 2013. The mine has received all itsmajor permits to commence construction, has a social license tooperate and has a long-standing commitment to environmental bestpractices – all of which is what much of the EV market craves.
Arianne expects theproject will create 1,000 jobs during operation and contribute wellover $12 billion in economic benefits to the region. “Of particularinterest at these meetings was Arianne’s rare geology that allows itto produce a phosphate ideally targeted for the LFP battery, ourgeopolitically safe location (Quebec, Canada) and the fact that we arefully permitted and shovel ready,” said Ostroff.
EV manufacturerscontinue to adopt the LFP as they seek cheaper, greener, safer andmore stable alternatives. LFPs seem to be taking center stage andjudging from the interest in Arianne at the recent trade mission, sois this Canadian miner.
ARIANNE PHOSPHATE INC. ( www.arianne-inc.com )owns the Lac à Paul phosphate deposit in Quebec, Canada. Fullypermitted and shovel ready, the asset is among the world’s largestgreenfield deposits, capable of producing an environmentally friendlyphosphate concentrate. Due to the nature of its high-purity,low-contaminant product, Arianne’s phosphate can be used to producefertilizer as well as meeting the technical requirements of specialtyapplications such as the lithium-iron-phosphate (LFP) battery. The Lacà Paul deposit is rare due to its geographic location and geologicalstructure. Arianne Phosphate is listed on both the TSX-V: DAN and the OTCQX: DRRSF .
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Thisinformation contains forward looking statements. All statements, otherthan statements of historical fact, included herein, including withoutlimitation, statements regarding potential mineralisation andreserves, exploration results and future plans and objectives ofArianne Phosphate Inc, are forward-looking statements that involvevarious risks and uncertainties. There can be no assurance that suchstatements will prove to be accurate and actual results and futureevents could differ materially from those anticipated in suchstatements. Important factors that could cause actual results todiffer materially from Arianne Phosphate Inc’s (“AriannePhosphate” or the “Company”) expectations are disclosed underthe heading "Risk Factors" and elsewhere in Arianne PhosphateInc’s documents filed from time-to-time with the TSX Venture andother regulatory authorities.
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