Canadian Phosphate Limited has signed a non-binding Letter of Intent with Novaphos Inc. to explore advanced phosphate processing technology, aiming to produce high-grade phosphoric acid domestically for fertilizer and battery markets.
- Non-binding LOI signed between Canadian Phosphate and Novaphos
- Focus on sustainable phosphoric acid production from Wapiti and Fernie projects
- Technology avoids phosphogypsum waste, producing valuable by-products
- Supports North American fertilizer and lithium iron phosphate battery industries
- Advances Canadian phosphate supply chain, reducing import dependency
A Strategic Leap for Canadian Phosphate
Canadian Phosphate Limited (ASX – CP8) has taken a significant step toward transforming its phosphate operations by entering into a non-binding Letter of Intent (LOI) with Novaphos Inc., a U.S.-based innovator in phosphate processing technology. This collaboration aims to leverage Novaphos’ proprietary process to convert CP8’s sedimentary rock phosphate from its Wapiti and Fernie projects in British Columbia directly into high-grade phosphoric acid.
The move aligns with Canadian Phosphate’s broader ambition to develop a vertically integrated phosphate industry in North America, reducing the continent’s reliance on imported phosphate fertilizers and supporting emerging markets such as lithium iron phosphate (LFP) batteries.
Innovative Technology with Environmental Benefits
Novaphos’ technology stands out by sidestepping the traditional wet-acid process, which is notorious for generating phosphogypsum waste, a hazardous by-product requiring costly disposal. Instead, Novaphos produces a solid calcium silicate by-product that can be repurposed in the construction industry, turning waste into value. This sustainable approach not only minimizes environmental impact but also promises lower operating costs and a smaller physical footprint.
For Canadian Phosphate, whose projects benefit from proximity to low-cost natural gas, hydroelectric power, and key infrastructure, this technology could unlock new value streams and enhance the economic viability of their phosphate resources.
Meeting Growing Demand in Fertilizers and Batteries
The partnership is timely given Canada’s current 100% import dependency for phosphate fertilizers and the rapid expansion of LFP battery manufacturing in North America, highlighted by major gigafactory investments from companies like Stellantis, LG, and Volkswagen. By developing a domestic source of high-grade phosphoric acid, CP8 and Novaphos aim to support food security and the clean energy transition simultaneously.
Canadian Phosphate’s Managing Director Daniel Gleeson emphasized the strategic fit, noting the potential for scalable, sustainable capital investments that align with both agricultural and energy sector needs.
Next Steps and Market Implications
Under the LOI, the two companies will conduct technical and commercial evaluations of the Novaphos process using CP8’s phosphate ore, assess potential project locations in British Columbia and Alberta, and work toward definitive agreements covering engineering, licensing, and project development. While non-binding, this agreement signals a clear intent to advance the partnership in good faith.
Meanwhile, Canadian Phosphate continues to progress its exploration and bulk sampling programs, aiming to underpin resource confidence and align project development with market demand.
This collaboration could mark a turning point for the North American phosphate industry, introducing a more sustainable and integrated supply chain that supports both traditional agriculture and the burgeoning battery sector.
Bottom Line?
As Canadian Phosphate and Novaphos move from intent to implementation, the race to establish a sustainable, domestic phosphate supply chain in North America gains new momentum.
Questions in the middle?
- What are the projected timelines and capital requirements for commercializing Novaphos technology at CP8’s sites?
- How will the partnership impact Canadian Phosphate’s financial outlook and project valuation?
- Can the technology scale effectively to meet growing demand from both fertilizer and LFP battery markets?