Strategic Investments in African Phosphates Fuel Asian Markets and EV Innovations

Morocco, holding 73% of the global phosphate reserves, has OCP, the world's largest phosphate producer and the fourth-largest fertilizer exporter. OCP crafts specialized fertilizers catering to Indian agricultural needs. In 2023, a significant deal was struck where OCP agreed to supply up to 700,000 tonnes of Triple Super Phosphate (TSP) and a million tonnes of DAP to India under a tripartite agreement with Indian fertilizer producers and the Indian government. TSP is notable for its high phosphate content, tailored for the Indian soil. Additionally, a longstanding partnership exists between India's Chambal Fertilisers and OCP through the Indo Maroc Phosphore SA (IMACID) joint venture established in the late 1990s at Morocco's Jorf Lasfar Port. Tata Chemicals further invested in IMACID in 2005, enhancing its phosphoric acid production capabilities.

China, despite being a major producer of phosphate ore, has been making substantial investments in North Africa's phosphate resources, particularly in Algeria, which boasts the world's fourth-largest reserves. In 2022, a landmark $7 billion joint venture was formed between China’s Wuhuan Engineering and Yunnan Tian’An Chemical, and Algeria's Asmidal and Manal. This collaboration, known as the Algerian Chinese Fertilizers Company (ACFC), marks Algeria's entry into integrated mining and fertilizer production.

This surge of Asian interest in African phosphates is not solely for traditional fertilizer use but is increasingly driven by the electric vehicle (EV) industry. The shift towards lithium iron phosphate (LFP) batteries in EVs, which replaces more expensive metals like cobalt and nickel with iron and phosphate, underscores a strategic pivot. China, a leader in EV battery production, is expanding its LFP battery manufacturing facilities in Morocco, leveraging the region’s abundant phosphate resources. This strategic alignment is set to enhance cost efficiencies in battery production, underscoring the growing interconnection between global phosphate mining and cutting-edge technology sectors.