American Battery Factory Inc. (ABF), a leading battery manufacturer, has announced an agreement with First Phosphate Corp. to support the production of over 40,000 tons of annual fully North American manufactured Lithium Iron Phosphate (LFP) cathode active material (CAM). This agreement aims to bring LFP battery production to North America’s battery storage sector.
Under the agreement, First Phosphate and ABF will collaborate to source an established LFP technology partner to meet ABF’s LFP CAM production needs in North America. First Phosphate will handle the sourcing and supply of local raw materials, manage logistics for the production process, and integrate into ABF workflows.
ABF anticipates sustained annual demand for LFP CAM starting in 2026, with a projected requirement of 40,000 tons by 2028 at its first planned LFP battery manufacturing facility in Tucson, Arizona. ABF also plans to construct several additional LFP battery manufacturing facilities across North America, each with a similar demand for LFP CAM.
As part of the agreement, First Phosphate’s raw materials will be integrated directly into the LFP CAM produced for ABF. The LFP CAM will then be used in ABF battery cells and end-user energy storage products. The two companies also intend to cooperate in the development of an LFP battery ecosystem in North America and consider locating facilities at the Port of Saguenay, Quebec.
The partnership between ABF and First Phosphate addresses the challenges associated with raw material bottlenecks, ensuring a localized supply chain for LFP batteries in North America. By working together, they seek to foster the growth of LFP battery production in the region.
Lithium Iron Phosphate (LFP) is a cathode material that offers high energy density, thermal stability, and cost-effectiveness. It is widely used in stationary energy storage, telecom applications, and the electric vehicle sector.
Overall, this agreement marks a significant step towards achieving energy independence and renewable energy goals in the United States, as well as meeting climate change initiatives and national security requirements.
– American Battery Factory: www.americanbatteryfactory.com
– First Phosphate Corp.: www.firstphosphate.com