First Phosphate (PHOS) Corporate presentation summary

Market opportunity and industry trends

• LFP battery cells are projected to account for 63% of global battery production by 2025, with the market expected to grow from $18.7 billion in 2024 to $90.3 billion by 2034.

• LFP technology is widely adopted across sectors including EVs, energy storage, AI data centers, robotics, and defense, with large-scale energy storage representing the largest share of usage.

• Lithium demand is set to surge, with lithium prices forecasted to rise up to 150% between 2026 and 2028, driven by energy storage battery buildout.

Supply chain and resource constraints

• LFP batteries require high-purity phosphate, which constitutes 61% of the cathode material, making purified phosphoric acid (PPA) a critical and scarce input.

• Meeting global battery demand by 2030 will require 33 new purified phosphoric acid plants, doubling current capacity, with only five such plants in the Western world today.

• Igneous phosphate rock, which is rare and high in purity, is more suitable for PPA production than sedimentary sources, and North American sedimentary phosphate production is expected to decline by 61% by 2037.

Project highlights and operational advantages

• The Bégin-Lamarche deposit contains 205 million tonnes of indicated and measured high-purity igneous phosphate, with a 91.1% conversion rate to PPA for LFP batteries.

• Annual production is projected at 900,000 tonnes of phosphate concentrate at 40.4% P2O5, supporting 350 GWh of LFP batteries, equivalent to 50% of North American vehicle production.

• The project boasts an NPV of CAD $2.1 billion, IRR of 37.1%, a 2.9-year payback, and a 23-year mine life, with a royalty-free deposit and a low strip ratio.

• Strategic location in Saguenay-Lac-St-Jean, Quebec, offers logistical advantages, access to infrastructure, and proximity to North American and European markets.