Surging Demand for New Energy Drives Phosphorus-Based Materials and Phosphate Ore Prices Higher

Buoyed by strong demand from the new energy vehicle (NEV) and energy storage markets, the supply-demand dynamics of phosphorus-based materials have significantly improved, pushing prices into an upward trajectory. As of late February 2026, the price of battery-grade lithium iron phosphate (LFP) reached RMB 60,000 per ton, surging over 90% from its 2025 low. Although hexafluorophosphate lithium (LiPF6) prices have retreated slightly, they remain at RMB 130,000 per ton. Upstream demand for phosphate rock has also risen sharply, with the spot average price of 30%-grade phosphate rock holding steadily above RMB 1,000 per ton—the highest level in three years. In 2025, China’s NEV sales exceeded 16 million units, with LFP batteries accounting for approximately 80% of installed traction battery capacity, driving LFP shipments to 3.9 million tons. Demand is projected to climb further to 6 million tons in 2026. Global phosphate rock resources are unevenly distributed; although China holds the world’s second-largest reserves, high-grade ore is scarce and mining costs are rising. Compounding this, the U.S. has designated phosphorus as a critical mineral, intensifying the global “phosphate rock race.” Industry experts anticipate that the growing scarcity of phosphate rock will continue to lift its price floor, underscoring its rising strategic importance.