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As the market forelectric vehicles (EVs) expands ,there is an ever-growing need to develop cost- and energy-efficientbatteries.
Fordecades, companies — North American companies in particular —placed their bets on lithium-ion batteries, which rely heavily onlithium, cobalt and nickel.
Due to concerns ranging from supply chain troublesto cost and efficiency, engineers and companies are now turning awayfrom cobalt- and nickel-based lithium-ion batteries in favor oflithium iron phosphate (LFP) batteries. Cobalt and nickel are scarce,expensive and controversial raw elements to mine compared toiron-phosphate chemistry.
According to a recent research report by Wood Mackenzie onpower and renewables, lithium iron phosphate is on course to be the leadingbattery chemistry for EVs by 2028 , replacing their nickel andcobalt-based lithium-ion predecessor. LFPs are safer, less expensivethan alternatives and last longer.
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. China currently has 95% of LFP cell production andalso has access to a large percentage of the raw materials needed tomanufacture LFP batteries. The industry in the country has benefittedfrom low-cost manufacturing processes, abundant raw materials and poorenvironmental governance.
However, asmore countries invest in LFPs, there will be a need for LFP productionoutside of China. This is especially true for Western carmakers thathave environmental concerns.
Why Chinese LFP Production MightBe Unsustainable
LFP batteries use phosphoric acid, a byproduct of phosphateore. Phosphate can be processed into phosphoric acid in two ways: thewet process or the pyrogenic (Turner) process. Chinacurrently uses the Turner process.
The Turner process is power- andwaste-intensive. While the wet process has a historically higher cost,it is preferred in the Western world because it is moreenvironmentally conscious. Another major difference between theprocesses is the wet process requires higher-quality phosphate ore;while there is capacity of phosphate ore around the globe, there arefewer sites with high-quality ore, especially that needed forspecialty applications such as batteries.
As auto producers invest more resources into soundenvironmental, social and governance (ESG) practices, it seemsunlikely that the Turner process will continue to dominate the LFPmarket. It makes sense for the West to develop a substantial phosphateand phosphoric acid production industry that uses the wet process tooffset the supply chain pinch from China.
Canada-Based AriannePhosphate Can Help Fill The Phosphate Gap
Arianne Phosphate Inc. (OTCMKTS: DRRSF)is a phosphate mining company that might help meet the growing demandfor phosphate used in batteries and fertilizer. The company’s Lac àPaul project in Quebec, Canada, is a response to the growing globaldemand for phosphate, which is increasing by 2% to 3% eachyear from agricultural demand– and claims to well-exceedthat with battery demand.
The Canada-based company reports that it adheres to stricterESG aligning with North American and European agendas and is settingitself apart from Chinese competitors.
One major edge Arianne reports is that itsmine is an igneous deposit that can produce a concentrate higher thanmost of the world’s phosphate, which is otherwise housed insedimentary rock. This allows Arianne to produce a high-purity andlow-contaminant phosphate concentrate ideal for use in batteries andcan be used in the wet manufacturing process.
As European and North American companies pivot away from theiroverdependence on Chinese suppliers, miners like Arianne Phosphatemight be well-positioned to help fill the supplygap.
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 .
This post contains sponsoredadvertising content. This content is for informational purposes onlyand is not intended to be investing advice.
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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