Canadian minerals developer First Phosphate has been approved for a nonrepayable contribution agreement for up to C$16.7-million with the Canadian government under the Global Partnerships Initiative (GPI).

GPI is administered through Natural Resources Canada as an investment fund dedicated to providing critical minerals funding and partnerships to support responsible value chains.

First Phosphate will use the grant to assess the technical and engineering parameters needed to validate the ability to produce a phosphate concentrate that meets the quality requirements of the lithium iron phosphate battery market.

The work, which will include testing of processing circuits and equipment, will be conducted based on the parameters established under a contract between First Phosphate and its offtaker.

The financial contribution is granted for the completion of a study of the company's integrated phosphate concentrate project in Saguenay-Lac-Saint-Jean, in Quebec, and covers eligible activities planned through 2028.

It forms part of an initiative to support industrial collaboration and the integration of Canadian projects into international supply chains for battery materials.

“Canada and its partners are putting real capital behind the secure and resilient critical mineral supply chains that the economy and defence industry relies on. By supporting companies such as First Phosphate, we are helping [to] deliver the minerals the world needs and the prosperity Canadians deserve,” says Canada Energy and Natural Resources Minister Tim Hodgson.

In turn, First Phosphate president Armand MacKenzie says this financial support from the GPI represents an important level for the continuation of the company’s development work.

He explains that the contribution enables the company to carry out detailed work aimed at validating application requirements for lithium iron phosphate batteries and the expectations of First Phosphate’s international partners.

First Phosphate’s development work will help strengthen Canada’s strategic positioning within the battery value chain through the development of domestic capacity to process apatite – or phosphate concentrate – into high-purity phosphoric acid for battery applications.

The project will develop a scalable Canadian process for the production of battery-grade phosphate concentrate, reducing dependency on foreign supply chains.

First Phosphate’s work may help to establish a Canadian phosphoric acid facility supported by local commercial production of phosphate concentrate, which will offer significant economic benefits, including skilled jobs.