Huatai Securities: High demand for iron phosphate boosts the prosperity of the phosphate industry chain.

Huatai Securities research report stated that benefited from the rapid growth of energy storage demand and the continuous expansion of downstream lithium iron phosphate production, the demand for lithium iron phosphate is expected to continue to grow. Furthermore, driven by the rise in costs of raw materials such as ferrous sulfate and phosphoric acid, the price of lithium iron phosphate has entered an upward trend since the second half of 2025. It is predicted that domestic lithium iron phosphate companies will see an improvement in profitability as operating rates increase, especially for companies using the iron method process, as the price difference has expanded due to the drop in raw material iron powder prices. At the same time, with the continuous increase in demand for lithium iron phosphate, upstream products in the lithium iron phosphate industry chain such as phosphate ore, yellow phosphorus, phosphoric acid, and industrial ammonium phosphate are facing constraints in terms of energy consumption, phosphate ore resource properties, and limited conditions for phosphate gypsum treatment. Additional production capacity is restricted by policies, but the industry outlook is expected to gradually improve. Companies with integrated phosphate ore resources are expected to benefit significantly.