China battery export controls boost First Phosphate as North American LFP supply chain gains spotlight
Published: 15:15 16 Oct 2025 EDT
Shares of First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF) surged nearly 60% this week on record trading volume across Canadian, European and US exchanges, after China imposed new restrictions on exports of lithium iron phosphate (LFP) battery materials — a core component for electric vehicles, grid storage and data centers.
The Canadian company has quietly built a fully integrated North American LFP supply chain using domestically sourced critical minerals, positioning itself as one of the few Western firms capable of producing end-to-end LFP battery materials.
The rally reflects investor interest in potential non-Chinese alternatives as the West seeks to secure key inputs for electrification and energy storage.
“First Phosphate is probably the only company that’s the most advanced in North America in terms of bringing together the entire supply chain that goes from mine all the way to market,” CEO John Passalacqua said in an interview with Proactive. “We’re the forerunner in terms of what North America needs to land this LFP battery supply chain.”
Beijing’s new export controls, approved by the State Council last week, extend to a broad range of lithium battery technologies, materials and manufacturing equipment. The measures cover high-performance lithium-ion batteries, cathode materials including lithium iron phosphate, and graphite-based anode materials. Exporters must now obtain licenses and comply with stricter customs verification procedures, which could disrupt global electric-vehicle production and energy-storage development.
Passalacqua said First Phosphate’s integrated model serves as a domestic supply chain model blueprint for North American industries seeking supply chain resilience. “We’re being looked at as a real model for mine-to-market initiatives in North America,” he said.
Based in Saguenay–Lac-Saint-Jean, Quebec, First Phosphate has spent several years developing its vertically integrated process. Earlier this year, the company said it successfully processed igneous phosphate rock from its Quebec project through multiple refinement stages to produce finished LFP battery materials, demonstrating supply chain independence long dominated by Chinese producers.
The company has also published a white paper on securing domestic phosphate supply for LFP cathode materials, earning a “Met” rating from the US Defense Industrial Base Consortium for its strategic potential.
Reflecting its growing recognition, First Phosphate has been invited to present at the 2025 Toronto Global Forum, a gathering of international business and policy leaders. Passalacqua is scheduled to deliver a keynote address titled “Securing the Mineral Backbone of the Economy.”
“It’s unusual for a company of our size to be featured alongside billion-dollar institutions,” he said. “But it shows how critical our work has become to the North American energy transition.”
China’s tightening grip on critical battery exports has highlighted the urgency for Western nations to localize their supply chains. How successfully the company can scale to meet global demand will shape the next chapter of its growing momentum.
