Edition Tag: Sulphur 2025-07-31

Guizhou Phosphorus Chemical Group has begun site clearing work in preparation for a major mining and downstream fertilizer and chemical project at Kaiyang in Guizhou province started. It is planned to complete the construction of the first phase of the 600,000 t/a lithium iron phosphate (LFP) production line by the end of 2025. The whole scheme is projected to cost $4.6 billion, with participation from the Guiyang Municipal Government and Guizhou Phosphorus (Group) Co., Ltd., China National Nuclear Huayuan Titanium Dioxide, China Mining Resources Group and other companies. The project comprises 1.4 million t/a of ferrous sulphate heptahydrate production, with co-production of 400,000 t/a of titanium dioxide, 600,000 t/a of iron phosphate, 600,000 t/a of lithium iron phosphate, 150,000 t/a of lithium carbonate, 10,000 t/a of lithium fluoride, 20,000 t/a of lithium hexafluorophosphate, 100,000 t/a of copper smelting, and phosphogypsum decomposition to produce sulphuric acid, with power cogeneration and other public utilities. Phosphate ore is processed to produce iron phosphate, which is then combined with ferrous sulphate, a byproduct of titanium dioxide production, to produce lithium iron phosphate, which is ultimately used in new energy vehicle batteries. It is expected that the first batch of production lines will be put into production in 2026 and the entire industry chain will reach full production in 2028. After completion, Guizhou will become the world's largest production base of phosphorus-based positive electrode materials, accounting for more than 30% of the national market share.

The end of June saw declines in sulphur prices in many regions amid subdued global demand across regions. Most import markets are sufficiently covered through July at least, resulting in limited activity while supply increases. These conditions have exerted downward pressure on prices as bearish sentiment spread across regions.

Caitlyn India Pvt Ltd (CIPL) has announced a $46 million investment to build a 50,000 t/a phosphoric acid plant in India. The plant aims to reduce import dependence and boost the country’s fertiliser self-sufficiency. Commissioning is planned for the financial year 2027. The facility, to be set up in a port-accessible industrial zone in southern India, will use hemihydrate-dihydrate technology to produce high purity phosphoric acid and cleaner gypsum by-products. A captive sulphuric acid unit will also be included to support efficient operations. Initially, the acid produced will supply Indian fertiliser manufacturers, with plans for captive use in future fertiliser production.

Titanium dioxide is one of the major chemical uses for sulphuric acid outside of phosphate and metals processing, and sulphate route plants remain concentrated in China.