China’s 2025 steel demand to fall 1.5% on year, state research institute says
China's steel consumption in 2024 and 2025 is forecast at 863 million metric tons and 850 million tons, respectively.
First Phosphate (CSE: PHOS) has leased a facility in Saguenay-Lac-St-Jean, Québec, for a 10,000 t/y iron phosphate plant, producing a key material for lithium iron phosphate (LFP) batteries used in electric vehicles and energy storage.
The plant, named First Saguenay, is expected to create 100 jobs in the region, with support from local organizations like the Saguenay-Le Fjord Chamber of Commerce and the Pekuakamiulnuatsh First Nation.
“This plant is the first link in the LFP Battery Valley in Saguenay-Lac-St-Jean,” said Promotion Saguenay chair Éric Larouche, underscoring its importance in developing a North American value chain for LFP batteries.
The facility will be retrofitted by Logistique Proco, a contractor with experience in the Quebec battery sector. The site offers natural gas, high-voltage electricity, wastewater treatment and direct rail access.
With over 28,335 m2 of space and room for expansion, the lease is for ten years and renewable. However, it’s contingent on First Phosphate securing financing by April 2025, with the project expected to cost C$90 million ($65 million).
First Saguenay is strategically placed 20 km from the deep-sea port of Saguenay. Quebec’s Minister for Saguenay Andrée Laforest highlighted the regional impact: “This facility will benefit both the local economy and Port Saguenay, a key player in this sector’s development.”
The plant will serve as part of First Phosphate’s vertically integrated operation, transforming phosphate from its mines, located about 80 to 120 km away, into cathode active material (CAM).
The company is already in advanced talks with partners, including American Battery Factory and Ultion Technologies, to meet growing demand in the energy storage and electric vehicle sectors. Production is expected to begin in early 2026.
First Phosphate has begun a feasibility study with Ultion Technologies to finalize infrastructure requirements. The plant’s technology has already been proven at two other facilities globally, allowing First Saguenay to move directly to large-scale production without a pilot phase.
