Long dominated by fertilizer production, China's phosphate industry is undergoing a profound transformation, with companies leveraging its abundant mineral resources to enter the booming lithium-ion battery industry. Yunnan Yuntianhua Co., Ltd., with over 800 million tons of phosphate reserves and an annual mining capacity of 14.5 million tons, has long relied primarily on fertilizer production, including monoammonium phosphate (MAP) and diammonium phosphate (DAP).

However, the surge in demand for electric vehicles (EVs) and energy storage has prompted a strategic shift toward battery-grade materials, particularly lithium iron phosphate (LFP) precursors and battery-grade monoammonium phosphate. This shift not only diversifies revenue streams but also addresses raw material shortages in the battery supply chain.

Phosphate rock prices (the foundation of both fertilizers and battery materials) continue to be supported by the lithium battery boom. In the short term, domestic phosphate rock supply remains tight, fertilizer demand remains stable, but demand for lithium iron phosphate (LFP) batteries will provide price support. The growth of the electric vehicle and energy storage markets will boost phosphate ore prices, with prices expected to rise by 10-15% by 2025.

SunSirs predicts that with lithium iron phosphate batteries expected to capture 60% of China's electric vehicle market by 2030, phosphate giants like Yunnan Yuntianhua will become the backbone of the supply chain.

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