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By Faith Ashmore, Benzinga
Lithium iron phosphate(LFP) batteries are gaining traction in the electric vehicle industry,both in the United States and globally. These batteries offer alower-cost alternative to the nickel cobalt manganese cells commonlyused in electric vehicles. These batteries are different from othercompositions, such as lithium-ion, due to the unique properties ofiron phosphate as the cathode material.
Recognizing the potential of LFP technology,major companies worldwide have pledged over $11 billion to establishfuture manufacturing facilities for LFP batteries in the UnitedStates. Large companies like Tesla (NASDAQ: TSLA) and Rivian (NASDAQ: RIVN) that have a history of electrification areinvesting in LFP battery production. Unlike some othercompositions that may contain cobalt, nickel, or manganese, lithiumiron phosphate batteries are cobalt-free and possess a lowerenvironmental impact.
Ford (NYSE: F) has also announced its intention toincorporate LFPs into various models, including the popular Mustang Mach-E , beginning this year. To support thisinitiative, Ford plans to establish a new production plantspecifically dedicated to LFP battery manufacturing in Michigan by2026. This significant milestone would make Ford the first automakerin the United States to have its own LFP battery facility.
However, analystscaution that many battery suppliers and automakers may not beadequately securing their supply of the 'p' in LFPs –phosphate – potentially leaving them susceptible to supply risk inthe long run. This exposure to risk highlights the need for moreinvestment in LFP technology and the broader battery supply chain toensure a secure and sustainable production of electric vehiclesthrough stable access to necessary materials For example, earlier thisyear GeneralMotors (NYSE: GM) invested $650 million in alithium company to help support its battery production for electricvehicles, but did not make a similar investment in phosphate. It seemslikely companies not currently investing in phosphate may look for areliable phosphate supply in the future.
Arianne Phosphate Inc. (OTCMKTS: DRRSF)is a promising phosphate mining company located in Quebec, Canada. Thecompany’s Lac à Paul project is a response to the growing globaldemand for phosphate, which is increasing by 2% to 3% eachyear in terms of agricultural demand and will be considerablyhigher when LFP batteries are taken into account. The Lac à Paulproject is a fully permitted, shovel-ready project.
Arianne’s is aworld-class mining site and is the single largest greenfield depositof phosphate. One major edge Arianne has is that the deposit isigneous which allows it to produce a concentrate higher than 90% ofthe world’s phosphate, which is housed in sedimentary rock. Thisallows Arianne to produce a high-purity and low-contaminant phosphateconcentrate ideal for use in batteries and fertilizer.
But beyond qualityphosphate, Arianne also boasts strong community support and adheres tostricter environmental, social and governance standards. For NorthAmerican companies that want their suppliers to align with theiragendas, Arianne is a perfect partner.
The growing interest from large companies highlights theincreasing importance of LFP batteries in the electric vehicleindustry. The reliability and suitability of LFP technology make it anattractive choice for powering electric cars, leading to their wideradoption and supporting the global transition towards sustainabletransportation – and Arianne Phosphate seems well-positioned to be areliable phosphate supplier for companies that are ramping up LFPbattery production.
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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