EcoPro BM, Soulbrain and Aekyung Chemical Form SIB Materials Alliance

[SMM Analysis: Morocco Phosphate Chemical Industry Analysis – Resource Endowment, Export Pattern and Capacity Expansion] Morocco’s phosphate ore reserves account for approximately 68% of the global total, with a grade as high as 33% (P₂O₅). Mining is mainly open-pit, offering significant cost advantages. Exports are shipped via four major ports: Casablanca, Safi, Jorf Lasfar, and Laayoune, with Safi Port emerging as a strategic hub. In 2025, raw ore exports reached 6.80 million mt, with India as the largest buyer. OCP dominates the entire industry chain, and phosphate fertiliser capacity has been expanded to 16 million mt/year. Under the SP2M plan, the target is to reach 20 million mt/year by 2027, and its influence on global fertiliser pricing continues to strengthen. Key points to watch: pace of capacity release, port logistics bottlenecks, and changes in export flow directions.

This week, operations across the industry chain continued to diverge. The lithium segment remained relatively strong: an upward shift in the price center of lithium carbonate drove ore prices and lithium hydroxide higher, but salt plants became less willing to accept high-priced ore, and further gains were still constrained by margins. Lithium carbonate futures retreated from highs, while spot inquiries and transactions improved somewhat; downstream demand was still dominated by just-in-time procurement. Some metal salts and intermediate product markets remained weak, with more low-priced supply and muted actual transactions; nickel sulphate held steady, but spot orders were under pressure. Ternary cathode precursor prices were weak due to softer raw materials, while ternary cathode material continued to rebound, supported by a rebound in lithium chemicals and stockpiling ahead of the peak season. LFP supply and demand remained in a tight balance; tight raw materials, declining inventory, and rising processing fees strengthened cathode enterprises’ bargaining power. The anode, separator, and electrolyte segments were broadly stable, while supply bottlenecks persisted in parts of the sodium-ion battery chain. On the recycling side, demand for LFP electrode was active, while transactions in high-metal-content black mass were cautious; going forward, focus will be on whether peak-season demand materializes and how raw material price pass-through evolves.

At the beginning of the week, the industry chain as a whole continued a weak and divergent pattern. Trading in upstream raw materials and lithium chemicals remained sluggish, with a wide psychological price spread between sellers and buyers. Some low-priced supply continued to be released, and the price center remained under pressure. The electrolysis products, intermediate products, and powder markets all lacked clear demand support. Downstream players mainly relied on just-in-time procurement and cargo pick-up under long-term contracts, with limited spot order activity. The precursor market stayed in the doldrums, affected by declines in some raw material prices. Top-tier players saw some recovery in export orders and production schedules in China, but small and medium-sized enterprises were still constrained by the off-season. Cathode material prices edged up, driven by a rebound in lithium chemicals prices and stockpiling ahead of the traditional peak season, while demand from the European auto market also provided some support. The consumer electronics-related materials market delivered mediocre performance, and price cuts have not yet materially improved shipments. At the industry level, lithium-ion battery production in January–July rose 40.2% YoY. Meanwhile, “anti-involution” governance in key industries continued to advance, and improvements in the supply-demand structure and price order remain worth watching.