Global Phosphoric Acid Market Heats Up: Technological Innovation Drives Industrial Upgrade

As a core product in the basic chemical raw materials sector, phosphoric acid (CAS#7664-38-2) has regained global industry attention due to surging demand from downstream sectors including new energy and electronic chemicals. According to Grand View Research's latest report, the global phosphoric acid market is projected to exceed USD 52 billion in 2023, with a CAGR of 4.8%. Major phosphoric acid producers such as China, Morocco, and the U.S. are accelerating production capacity expansion.

Global Giants Invest in Green Phosphoric Acid Production
Morocco's OCP Group, a leading global phosphoric acid manufacturer, recently announced that its USD 2.2 billion Jorf Lasfar production base will commence operations in Q1 2024. Utilizing a novel wet purification process, the facility reduces energy consumption per unit by 18%. Concurrently, China's top phosphoric acid producer Hubei Xingfa Group has initiated trial production at its new 500,000-ton/year food-grade phosphoric acid plant in Yichang. The production line achieves 99.99% purity through continuous crystallization technology, meeting stringent semiconductor-grade standards.

"The explosive demand for power battery cathode materials is driving high-purity phosphoric acid applications beyond traditional fertilizers into advanced manufacturing," stated David Müller, an international chemical analyst. Global phosphoric acid procurement for power batteries surged 63% YoY in H1 2023, compelling phosphoric acid manufacturers to accelerate technological upgrades.

China's Phosphoric Acid Industrial Cluster Demonstrates Competitive Edge
As the world's largest phosphoric acid producer, China exported 2.86 million tons during the first three quarters of 2023, marking an 11.7% YoY increase. Phosphorus-rich provinces like Yunnan and Guizhou have established integrated industrial chains. Leading phosphoric acid manufacturers such as Yuntianhua Group now cover the entire production process from phosphate mining to electronic-grade phosphoric acid processing. Notably, Sichuan Development Lomon's innovative "phosphoric acid-battery materials-recycling" circular economy model reduces carbon emissions per ton to 60% of industry averages.

Environmental Regulations Reshape Industry Landscape
The revised EU REACH regulation mandates phosphoric acid manufacturers to complete full-process carbon footprint certification by 2025, prompting multinational companies including India's Gujarat Alkalies to accelerate clean production upgrades. Meanwhile, emerging markets like Vietnam and Indonesia are attracting Chinese phosphoric acid producers through tax incentives, with three million-ton-scale projects signed in Q3 2023 alone.

Market Outlook: Supply-Demand Dynamics Face Adjustment
ICIS price monitoring shows the global average price for 85% industrial-grade phosphoric acid reached USD 980/ton in September 2023, a 14% increase since January. Analysts predict market adjustments in 2024 as new African phosphoric acid manufacturers ramp up production and wet-process technology proliferates. However, specialty phosphoric acid segments including food additives and water treatment agents are expected to maintain over 12% growth.

Major phosphoric acid producers are increasing R&D investments to address market shifts. Germany's Budenheim has advanced its nano-scale phosphate preparation technology to pilot testing, which reduces phosphoric acid dosage in flame retardants by 40%, with commercial applications anticipated in 2024.