First Phosphate Provides Perspective on Recent Trading Activity in its Common Shares

Core Perspective - First Phosphate Corp. addresses recent trading activity, including increased volume and price volatility of its common shares, following China's announcement of new export controls on critical materials [1][3]. Industry Impact - China's Ministry of Commerce announced unilateral export controls on rare earth materials, including lithium iron phosphate (LFP) cathode active material, effective November 8, 2025, which is expected to affect various global industries such as energy storage, AI data centers, robotics, mobility, defense, and electric vehicles [2][4]. - LFP batteries constitute a majority of global electric battery production, predominantly manufactured in China, indicating a significant reliance on Chinese supply chains [4]. Company Developments - First Phosphate is focused on onshoring the LFP battery supply chain in North America, recently producing commercial-grade LFP 18650 battery cells using North American critical minerals [5][6]. - The high-purity phosphoric acid and iron powder for these battery cells were sourced from the company's Bégin-Lamarche property in Quebec, Canada [6][12]. - A recent white paper by First Phosphate received a "Met" rating from the Defense Industrial Base Consortium, highlighting the importance of phosphate for national defense and the need for a domestic source to reduce dependency on China [7]. Strategic Goals - First Phosphate aims to accelerate its mine-to-market LFP battery supply chain strategy in North America, targeting markets such as energy storage, data centers, robotics, mobility, defense, and electric vehicles [7][11].