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The world of electric vehicles (EVs) isfraught with controversial opinions; companies and consumers alikehave all but waged war over how to make the best battery possible. Fordecades, companies — specifically North American companies —placed their bets on lithium-ion batteries, which rely heavily onlithium, cobalt, and nickel resources.
However, cobalt and nickel are scarce,expensive and controversial raw elements to mine — in part due tothe high human costs involved.
As such, due to factors ranging from supply chainconcerns to cost and efficiency considerations, engineers andcompanies are now transitioning away from lithium-ion batteries withcobalt and nickel in favor of lithium iron phosphate batteries (LFP).
According to arecent research report by Wood Mackenzie Power & Renewables,lithium iron phosphate is on course to be the leadingbattery chemistry for EVs by 2028 , replacing their cobalt andnickel-based lithium-ion predecessor. LFPs are safer, less expensivethan alternatives, and last longer. LFPs also require less lithium.
But in the current geopoliticalcontext, raw material supply concerns are a keyconsideration.
Raw Materials — Where They Come From And TheConcerns For American Companies
China has long been investing in the LFP market;today, 44%of EVs sold in China use LFP batteries compared to 3% in theU.S. and Canada. Other countries and companies are now starting totake notice and beginning investment in the LFP industry.
Some carmakers aredeveloping and producing cobalt-free batteries; in fact, manycompanies such as Tesla Inc. (NASDAQ: TSLA) are shifting awayfrom lithium-ion batteries that combined materials like cobalt,nickel, and manganese in favor of LFPs. But North American companies,including Tesla, are hesitant to rely heavily on Chinese, MiddleEastern, and North African phosphate.
Chinais currently the largest exporter of phosphate fertilizer,with Russia not far behind. The largest phosphate concentrate reservesare in Morocco followed by other Middle Eastern and North Africancountries. China and Russia have recently suspended or minimized theexports of phosphate, which is proving problematic to the supply chainand for manufacturers relying on Chinese phosphate. Similarly, thephosphate concentrates in the Middle East and North Africa (MENA) aredependent on geopolitical stability that is often fluctuating.
When considering all of these factors, NorthAmerican carmakers are eager to find a phosphate supply that isstable, high quality and closer to home.
Canadian AriannePhosphate Says It Has The Answer
Arianne Phosphate Inc. (OTC: DRRSF) is oneof the promising phosphate mining companies that can help meet thegrowing demand for phosphate for EVs. The company’s Lac à Paulproject is a response to the growing global demand for phosphate,which is increasing by 2% to 3% eachyear.
Twothings set Arianne’s Lac à Paul project in Quebec apart fromChinese and MENA competitors. First, the mine is made up of igneousdeposits that produce a concentration higher than 90% of the world’sphosphate, which is housed in sedimentary rock. Second, theCanada-based company adheres to stricter environmental, social andcorporate standards, aligning with North American and Europeanagendas.
AsEuropean and North American companies pivot away from theiroverdependence on Chinese and MENA suppliers, Arianne Phosphate seemsto be well-positioned to fill the supply gap.
ARIANNEPHOSPHATE 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 .
This post contains sponsored advertising content.This content is for informational purposes only and is not intended tobe investing advice.
This information contains forward lookingstatements. All statements, other than statements of historical fact,included herein, including without limitation, statements regardingpotential mineralisation and reserves, exploration results and futureplans and objectives of Arianne Phosphate Inc, are forward-lookingstatements that involve various risks and uncertainties. There can beno assurance that such statements will prove to be accurate and actualresults and future events could differ materially from thoseanticipated in such statements. Important factors that could causeactual results to differ materially from Arianne Phosphate Inc’s(“Arianne Phosphate” or the “Company”) expectations aredisclosed under the heading "Risk Factors" and elsewhere inArianne Phosphate Inc’s documents filed from time-to-time with theTSX Venture and other regulatory authorities.
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