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By Faith Ashmore, Benzinga
Lithium iron phosphate(LiFePO4) batteries, or LFPs, have emerged as an important batterycomposition that has been gaining increasing popularity in recentyears. These batteries are different from other compositions, such aslithium-ion, due to the unique properties of iron phosphate as thecathode material. Unlike some other compositions that may containcobalt, nickel or manganese, lithium iron phosphate batteries arecobalt-free and possess a lower environmental impact.
The popularity oflithium iron phosphate batteries has grown significantly due to theirsafety, stability and longevity. They are highly resistant to thermalrunaway and have a lower risk of overheating or catching fire comparedto other battery types. Because of this, they are ideal for electricvehicle and energy storage system applications. Furthermore, lithiumiron phosphate batteries have a longer lifespan and higher cycle life,allowing them to handle more charge and discharge cycles withoutsignificant degradation. The reduced need for frequent replacements isa testament to their long-term cost-effectiveness.
The increasingpopularity of lithium iron phosphate batteries is reflected in theglobal market, where there is a growing interest in their adoption.Multiple industries, including automotive and renewable energy, arerecognizing the benefits of these batteries and incorporating theminto their products and infrastructure. For example, Tesla's (NASDAQ: TSLA) recent shift towards utilizing lithium ironphosphate batteries in their electric vehicles is a testament to therising prominence of this battery composition.
However, despite theincreasing adoption of LFPs, companies and countries have not been aseager to invest in phosphate companies as compared to lithium,graphite, cobalt and other similar miners. For example, earlier thisyear, GMinvested $650 million in a lithium company to help support itsbattery production for electric vehicles. Analysts have even warnedthat not enough battery suppliers are securing their supply of the‘p’ in LFPs, makingthem vulnerable in the long run.
From an investing standpoint, it would seemsurprising that phosphate has not been invested in with the samefervor as other battery material compositions because unlike materialslike cobalt, phosphate is a more diverse material because of itsapplication in fertilizer. Simply put, agricultural demand meansphosphate demand also arises from a sector that is poised to continueto raise consumption. And when projections show that by the end of thedecade, LFPs are projected to be the leadingbattery chemistry for EVs , replacing their cobalt andnickel-based lithium-ion predecessor, the need for reliable phosphatesuppliers cannot be understated. Even as spot prices for batterymaterials like cobalt may fall, agricultural demand offers somesupport to the price of phosphate.
Arianne Phosphate Inc. (OTCMKTS: DRRSF) is apromising 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 the deposit is igneouswhich allows it to produce a concentrate higher than 90% of theworld’s phosphate, which is housed in sedimentary rock. This allowsArianne 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 corporate standards. For NorthAmerican companies that want their suppliers to align with theiragendas, Arianne is a perfect partner.
As North American battery suppliers look to the future, AriannePhosphate could be a feasible option to help ramp up LFP production.And when it comes to investing in a phosphate supplier, Arianne’s12-year history and quality mean it stands strong amongst the limitedcompanies in the sector.
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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