First Phosphate Corp
Building North American LFP Battery Supply Chain Amid China Controls
Published: Dec 16, 2025
Author: FRC Analysts
Disclosure: First Phosphate Corp has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
Company Details
Sector – Basic Materials / Industry – Other Industrial Metals & Mining
Trading Information
Ticker & Exchange – PHOS.CN
Report Highlights
- PHOS is up 111% since we initiated coverage in July 2025, driven by both company-specific advancements, and sector developments. Sector catalysts include the recent addition of phosphate to the U.S. Critical Minerals list, and China’s export controls on cathode active material (CAM) for lithium iron phosphate (LFP) batteries.
- The company has raised $15M through equity financings since September 2025. In-the-money options and warrants could provide an additional $14M.
- PHOS is developing a vertically integrated supply chain for LFP batteries, managing the full process from extracting high-purity phosphate to producing CAM. LFP batteries support key markets such as energy storage systems (ESS), and electric vehicles (EVs), and are gaining traction in fast-growing sectors including AI data centers, robotics, and automation.
- Recent tests showed that LFP battery cells made with 100% North American–sourced minerals demonstrated competitive performance metrics. PHOS supplied phosphate and iron, with lithium and graphite from other juniors, demonstrating the potential for a fully local LFP supply chain.
- The company has begun a 30,000 m drill program to potentially confirm, expand, and/or upgrade its resource ahead of a feasibility study. The 2024 Preliminary Economic Assessment returned an after-tax NPV8% of $1.59B at US$350/t phosphate vs. US$305/t spot. PHOS is currently trading at just 9% of the NPV.
- The addition of phosphate to the U.S. Critical Minerals list is a major development for the company. Phosphate is already on Canada’s list, and we believe this designation improves eligibility for funding programs, potentially accelerating PHOS’s mine-to-market initiatives.
- Upcoming catalysts include drilling, potential downstream facility development, offtake agreements, and/or project financing.
Price and Volume (1-year)
| YTD | 12M | |
| PHOS | 232% | 244% |
| CSE | 24% | 35% |
*Subsequent to FY2026 (6M), PHOS raised $15M through equity financings.
*QP: Gilles Lavardiére, P.Geo., Chief Geologist of First Phosphate Corp.
* First Phosphate Corp. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
Portfolio Summary
Fundamental Research Corp. Equity Rating Scale:
Fundamental Research Corp. Equity Rating Scale (ratings are not a recommendation to acquire, dispose of, or take no action regarding a security; the definition of our ratings are explained below):
- Buy – Fair value is 12% above the current market price; or risk and reward is favorable
- Hold – Fair value is between 5% to 12% above the current market price
- Sell – Fair value is 5% above, or less, than the current market value; or risk and reward is unfavorable
- Suspended or Rating N/A – Coverage and ratings suspended until more information can be obtained from the company regarding recent events.
Fundamental Research Corp. – Risk Rating Scale:
- (Low Risk) – The company operates in an industry where it has a strong position (for example a monopoly, high market share etc.) or operates in a regulated industry. The future outlook is stable or positive for the industry. The company generates positive free cash flow and has a history of profitability. The capital structure is conservative with little or no debt.
- (Below Average Risk) – The company operates in an industry where the fundamentals and outlook are positive. The industry and company are relatively less sensitive to systematic risk than companies with a Risk Rating of 3. The company has a history of profitability and has demonstrated its ability to generate positive free cash flows (though current free cash flow may be negative due to capital investment). The company’s capital structure is conservative with little to modest use of debt.
- (Average Risk) – The company operates in an industry that has average sensitivity to systematic risk. The industry may be cyclical. Profits and cash flow are sensitive to economic factors although the company has demonstrated its ability to generate positive earnings and cash flow. Debt use is in line with industry averages, and coverage ratios are sufficient.
- (Speculative) – The company has little or no history of generating earnings or cash flow. Debt use is higher. These companies may be in start-up mode or in a turnaround situation. These companies should be considered speculative.
- (Highly Speculative) – The company has no history of generating earnings or cash flow. They may operate in a new industry with new, and unproven products. Products may be at the development stage, testing, or seeking regulatory approval. These companies may run into liquidity issues and may rely on external funding. These stocks are considered highly speculative.
Definition of FRC’s Fair Value Estimate – Our fair value estimate is the theoretical value of the company’s equity using widely accepted methods of valuation such as discount cash flow or comparables. IT IS NOT A TARGET PRICE or PREDICTION OF THE FUTURE STOCK PRICE.
Disclaimers and Disclosure
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The distribution of FRC’s ratings are as follows: BUY (69%), HOLD (3%), SELL / SUSPEND (28%). Yorkton Equity Group Inc.
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