G7 Alliance Backs First Phosphate Project As Tesla, Ford, and Samsung Scramble For Local LFP Battery Chain

Summary

Tesla, Ford and Samsung are spending billions building local LFP battery factories. They all need the same critical material, battery-grade phosphate, and China controls over 90% of the supply. One small-cap company just got G7 backing to fix that.

Two G7-endorsed initiatives, a C$275 million allied guarantee, C$16.7 million in non-repayable government funding, and a $2.1 billion NPV project trading at a fraction. The CEO has $1.8 million of his own money in the stock.

Agnico Eagle's C$94 Million Bet on Igneous Phosphate. First Phosphate Corp. (OTCQX: FRSPF) May Be the Last Pure Play Standing.

G7 Backing: A Mid-Market Project Developer 

At the 52nd G7 Summit in Evian, France on June 17, 2026, First Phosphate (CSE:PHOS | OTC:FRSPF) formalized international investment and offtake agreements under the G7 Critical Minerals Resilience and Production Alliance. The company had two of only 13 critical minerals initiatives presented by Canada and backed by the Alliance, placing a mid-market project developer, First Phosphate, alongside national supply chain priorities endorsed by the world's leading economies.

The scale of international commitment is substantial. Denmark's Export and Investment Fund (EIFO) issued a letter of intent for up to C$275 million in guarantees to develop the flagship Begin-Lamarche mine. Italy's export-credit and development institutions, SACE, Cassa Depositi e Prestiti (CDP), and SIMEST, along with engineering group MAIRE (deploying Ballestra technology) committed to support construction of the Port Saguenay phosphoric acid plant. Belgium's Ambassador to Canada and Special Envoy for energy security attended the funding agreement ceremony when the company received a contribution of $16.7 million from the Government of Canada. This is not a company pitching ideas to governments but rather a project that multiple allied nations are putting institutional capital behind.

The Agnico Eagle Signal: Major Miners Are Moving In

On May 4, 2026, Avenir Minerals, a subsidiary of Agnico Eagle Mines, the world's second-largest gold producer, acquired Fox River Resources for approximately C$94.3 million all-cash. It was Avenir Minerals’ first-ever outright takeover, and it landed squarely in igneous phosphate, a sector no one expected a major to enter. First Phosphate (CSE:PHOS | OTC:FRSPF) shares jumped roughly 18% on the news.

The implications are clear. Igneous phosphate has moved from a niche exploration category to a sector attracting institutional-scale capital from the world's largest miners. With Fox River now off the board, First Phosphate is one of the only pure igneous phosphate plays still standing in North America. There are hundreds of lithium companies while there are barely any phosphate companies. And the market is asking a question it should have asked years ago: where does the high-purity phosphate come from for the battery revolution? 

Lithium constitutes only 4% of LFP powder. 

Phosphate constitutes 61%.

Offtakes Locked In, and Revenue Is Already Flowing

First Phosphate (CSE:PHOS | OTC:FRSPF) has definitive, long-term offtake agreements spanning both ends of its supply chain: a minimum of 200,000 tonnes per year of phosphate concentrate for the Begin-Lamarche mine (signed January 5, 2026) and a minimum of 60,000 tonnes per year of phosphoric acid from the planned plant at Port Saguenay (signed December 16, 2024). Both were signed with creditworthy international partners and reaffirmed under the G7 Alliance framework, securing demand for the company's output years before first production.

This is not just paper. First Phosphate has already received an initial pre-payment of roughly US$523,000 under its existing concentrate offtake, real money in the door before a single tonne has been mined. When a development-stage company has definitive offtakes, G7 endorsement, allied government guarantees, and pre-payments flowing before production, the de-risking trajectory speaks for itself.

Government Is Putting Real Capital Behind It

Canada signed a C$16.7 million non-repayable federal contribution with First Phosphate (CSE:PHOS | OTC:FRSPF) through Natural Resources Canada's Global Partnerships Initiative. It funds the project all the way through the feasibility study to a final investment decision without dilution, with eligible activities covered through 2028. Canada's Minister of Energy and Natural Resources, Tim Hodgson, has repeatedly championed the project, visited Port Saguenay in person, and stated at the G7 leaders meeting: "Canada has what the world wants, and we are delivering." The project is expected to create approximately 277 skilled jobs and anchor a Canadian phosphoric acid facility.

Watch the full video here: https://www.youtube.com/watch?v=lAnsmsSN93Y 

Among the Purest Igneous Phosphate on Earth, With Economics to Match

Begin-Lamarche can produce a phosphate concentrate grading roughly at 40.4% P2O5 which is amongst the purest in the world. That is well above the global average for igneous phosphate concentrates (roughly 36.9%), outperforming deposits in Russia, South Africa, Finland, and Brazil. Only about 5% of global phosphate is igneous, and up to 90% of First Phosphate's (CSE:PHOS | OTC:FRSPF) concentrate can be converted into battery-grade purified phosphoric acid, the exact feedstock LFP cathode plants require.

Updated project economics: CAD $2.1 billion NPV at an 8% discount rate. 37.1% IRR. 2.9-year payback. 23-year mine life, open at depth. Open pit with a 1.5:1 strip ratio. Buildout CAPEX of USD $485 million at 20% contingency. Target production of roughly 900,000 tonnes per annum, equivalent to approximately 350 GWh per year of LFP battery capacity. Emerging Growth Research maintains a Buy rating with a C$4.94 target, roughly 181% upside from the June 2026 share price.

The CEO has invested $1.8 million of his own money at market prices. Management takes 50% of compensation in stock. The Board and CEO takes 100% of compensation in stock. The company is debt-free.

Watch the full site visit video here: https://www.youtube.com/watch?v=KEiAuixTc6w 

The LFP Supply Chain Crisis Is Accelerating

LFP batteries overtook nickel-based chemistries in 2025, now comprising nearly three-quarters of global battery production with 48% year-over-year growth. Tesla's $4.3 billion LFP battery deal, CATL's $17 billion LFP contract, Ford's $3.5 billion LFP plant in Kentucky, Samsung SDI's $1 billion LFP supply deal, billions are pouring into LFP factory capacity. But China controls over 90% of global LFP production and has restricted exports. North America has a large projected shortage of battery-grade phosphate material with practically zero domestic supply. 

First Phosphate (CSE:PHOS | OTC:FRSPF) is building the vertically integrated mine-to-market LFP battery supply chain that the industry desperately needs.

This is not a traditional mining story. It is an energy infrastructure prerogative tied to energy storage, data centers and the future of the automated industrial paradigm, AI data centers, robotics, defence, and mobility applications will require LFP battery to advance.

The company has already produced commercial-grade LFP 18650 battery cells using 100% North American critical minerals, believed to be the first time this has been accomplished. 

Five Reasons First Phosphate (FRSPF) Should Be on Your Watchlist

-       G7 backing and C$275 million in allied government guarantees. Two of only 13 Canadian critical minerals initiatives endorsed by the G7 Alliance. Denmark's EIFO offered up to C$275 million for the mine. Italian state institutions and MAIRE engineering committed to the phosphoric acid plant. Canada contributed C$16.7 million non-repayable to the feasibility for the mine. This is multilateral, institutional-scale support that no peer in this space has achieved.

-       Agnico Eagle just paid C$94 million to enter igneous phosphate, and First Phosphate is one of the last pure plays left. Avenir Minerals, owned by the world's second-largest gold-miner made its first-ever outright takeover in this sector. There are hundreds of lithium companies but barely any phosphate companies and likely only First Phosphate which is fully focused on LFP battery. Phosphate is 61% of LFP powder. Lithium is only 4%. The market is repricing this sector in real time.

-       A CAD $2.1 billion NPV project with 37.1% IRR, offtakes locked in, and pre-payments already received. Definitive agreements for 200,000 tonnes of concentrate and 60,000 tonnes of phosphoric acid per year. Roughly US$523,000 in pre-payments already in the door before a single tonne is mined. 2.9-year payback. 23-year mine life. Feasibility study fully funded through 2028. Analyst target C$4.94, 181% upside.

-       Billions in LFP factory investment is creating the customers, and North America has no domestic supply. Tesla's $4.3 billion LFP deal. CATL's $17 billion contract. Ford's $3.5 billion plant. Samsung SDI's $1 billion commitment. LFP batteries now dominate globally at 75% global market share. China controls 92% of LFP production and has restricted exports. North America faces a large phosphoric acid shortage. First Phosphate has already proven the entire LFP mine-to-market LFP battery supply chain works using domestic minerals.

-       Complete insider alignment and a debt-free balance sheet. CEO John Passalacqua has invested $1.8 million of personal capital at market prices, 2.872 million shares purchased in the open market since May 2023. He takes 100% of his salary in stock. Management receives 50% of compensation in equity. The Board receives 100% in equity. Zero debt. When the CEO, the G7, and the world's second-largest gold miner are all signaling conviction, the gap between the current valuation and the underlying project economics deserves close attention.

This content is disseminated on behalf of First Phosphate Corp and constitutes sponsored advertising. It is not investment advice. Investing in junior mining companies involves significant risk including total loss of capital. Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions. The scientific and technical information in this article has been prepared in accordance with NI 43-101 and reviewed by Sam Hartmann, P.Geo., VP of Exploration, a qualified person for the purposes of NI 43-101.