- From fertilizer, to grow crops, even EV batteries, phosphate’s demand is growing, but the supply is running dangerously low
- North America alone is running at an annual deficit of about 4 million tons, according to a 2022 assessment by the EPA
- This is where the Lac à Paul Phosphate project in Québec under Arianne Phosphate Inc. (TSXV:DAN) holds promise
- Arianne Phosphate Inc. last traded at $0.20 per share
From fertilizer, to grow crops, even EV batteries, phosphate’s demand is growing, but the supply is running dangerously low.
North America alone is running at an annual deficit of about 4 million tons, and according to a 2022 assessment by the EPA, “Trade disputes, and reliance on a small number of countries for imports have led to limited supply and dramatically increased price of phosphate rock.”
By 2050, agriculture production is projected to grow 60 per cent and that poses a potential risk to the world’s food supply, according to data shared at the High Level Expert Forum.
As the world shifts towards Lithium-Iron-Phosphate (LFP) batteries to power EVs and store wind and solar energy, the need for phosphate is likely to grow. The global phosphate market is projected to reach US$16.8 billion this year and hit US$21.4 billion by 2033 according to Future Market Insights.
At the same time, supply is increasingly disrupted and most of the world is dealing with a deficit of this important rock, with North America, South America, Western Europe and much of Asia is forced to import.
Eighty-five per cent of all mines producing phosphate are owned by fertilizer companies, yet many of these companies are even not self-reliant, including North America’s largest, Mosaic Co. (NYSE:MOS).
This is where the Lac à Paul Phosphate project in Québec under Arianne Phosphate Inc. (TSXV:DAN) holds promise.
The development-stage phosphate mining company is operating in the world’s largest greenfield phosphate deposit. The mine has received all its major permits to commence construction and has a lifespan of more than 26 years.
The LFP market is expected to be a major driver of demand for phosphate and its market is forecast to exceed US$50 billion by the end of the decade, as stated by the company’s research.
The company’s joint research project with the CÉGEP college’s Riviere-de-Loup’s Environmental and Biotechnology Group has received a grant of C$727,500 over three years from the Natural Sciences and Engineering Research Council of Canada (NSERC), the major Canadian federal agency for funding natural sciences and engineering research in Canada.
Arianne Phosphate Inc. specializes in the extraction of independent phosphate rock. The Lac à Paul phosphate deposit is approximately 200 kilometres north of the Saguenay/Lac St. Jean area of Québec.
Arianne Phosphate Inc. last traded at $0.20 per share.
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