Energy storage power supply large capacity phosphoric acid

At a global level – regardless of whether China continues to dominate LFP cathode and iron phosphate production, or other regions become more self-sufficient – our long-term forecasts show overall demand for purified phosphoric acid far outstripping current global capacity in the long term, primarily due to this growth in the LFP sector.

In our base case, LFP demand growth would require global purified phosphoric acid capacity to nearly double in size by 2045 relative to current levels (+95%), whilst our upside scenario requires capacity growth as high as 120%.

Despite this uncertainty regarding the regional splits in LFP-related phosphate demand in the future, the global purified phosphoric acid industry will likely need to double in size over the next 20 years to cater to this growth in LFP usage.

Purified Phosphoric Acid (PPA) has a wide ranging number of food and industrial applications. food or industrial production or which are almost all fully off-taken. There is little excess PPA left for LFP production. accommodate LFP battery demand.

Only about 3 percent of the total supply of phosphate minerals is currently usable for refinement to cathode battery materials. It is also beneficial to do PPA refining near the battery plant that will use the material to produce LFP cells.

LFP Outlook Beyond the current LFP chemistry, adding manganese to the lithium iron phosphate cathode has improved battery energy density to nearly that of nickel-based cathodes, resulting in an increased range of an EV on a single charge.