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EV battery production adding pressure to global phosphate supply

The CEO of phosphate fertilizer producer Itafos says the rise in popularity of electric vehicles (EVs) is a contributing factor in the increase farmers are seeing in phosphate prices.

David Delaney says the mineral is crucial to the production of lithium-ion phosphate (LFP) batteries.

“If you’re making phosphoric acid, you need phosphate rock, and through phosphoric acid, you can make fertilizer.”  He says, “But you can also further upgrade to make purified phosphoric acid, and that’s one of the key ingredients to make LFP batteries.”

He tells Brownfield that China, the world’s largest phosphate producer, has significantly decreased its phosphate exports in part because of its shift to EVs.

“China today is looking at really protecting their farmers, ensuring that they have enough phosphate, knowing the reserve life is declining, and they’re also really committed to LFP batteries.”  He says, “There’s a lot of electric vehicles in China. They’re building more purified phosphate capacity.”

Delaney says it’s another variable driving phosphate demand in a limited global supply.

AUDIO: David Delaney – CEO of Itafos