Arianne Phosphate has announced results from its prefeasibility study. As per the company’s press release of 30 January 2024, Arianne commissioned a PFS to consider the viability of constructing a purified phosphoric acid (PPA) plant in the Saguenay region of Quebec to transform igneous-based phosphate concentrate into a battery-grade phosphoric acid for use in the lithium-iron-phosphate (LFP) battery.
As studied, the downstream facility would be capable of producing 350 000 t (100% P2O5 basis) annually of PPA, making the plant the largest producer outside of China. At 350 000 t, Arianne’s supply could address roughly 350 GWh of yearly Western gigafactory demand. Industry analysts such as CRU, Benchmark and McKinsey, see a significant shortage of PPA by the end of the decade as traditional demand from food additives and surging demand from the LFP battery greatly increase the needs for PPA, well beyond current supply availability.
In addition, Arianne’s facility would produce 220 000 t (100% P2O5 basis) annually of a secondary phosphoric acid used in the production of specialty fertilizers and animal feeds. The market for this product will also be facing severe restrictions as current producers of this product are limiting their output due to operating constraints.
“Opportunities like this don’t come along often,” said Brian Ostroff, President of Arianne Phosphate. “Access to a high-quality phosphate concentrate, the ability to economically produce PPA for use in specialty applications and the advent and growth of the LFP battery provide extremely compelling economics with a pre-tax NPV of over US$4.5 billion. Further, the study also demonstrates the opportunity for our Lac à Paul mine to have a local customer. In looking at the two projects in their entirety, the Arianne companies would provide enormous benefit to its stakeholders and unlock significant value for its shareholders.”