Hubei Yihua Signs 1 Mt/a Phosphogypsum-to-Sulfuric Acid Project amid Sulfur Supply Crisis

Published: Jun 30, 2026 13:59

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On 22 June 2026, China Wuhuan Engineering, Tianjin Cement Industry Design & Research Institute, and Hubei Yihua Chuxing Ecology signed a contract for a 1 Mt/a phosphogypsum-to-sulfuric acid project. The facility will produce 400,000 t/a of industrial sulfuric acid and cementitious admixtures using third-generation low-carbon calcination technology.

Hubei Yihua Signs 1 Mt/a Phosphogypsum-to-Sulfuric Acid Project amid Sulfur Supply Crisis

The project is a direct response to the May 2026 sulfur geopolitical crisis, when shipping disruptions in the Strait of Hormuz exposed China’s heavy reliance on imported sulfur for wet-process phosphoric acid. Phosphate acid prices surged over 70% to above 11,000 yuan/t. Phosphogypsum-based acid production becomes economically viable when sulfur prices exceed 1,500 yuan/t, replacing 0.3–0.35 t of imported sulfur per tonne of acid. The process creates a closed-loop cycle of solid waste, sulfur resources, and calcium materials.

China’s phosphogypsum-to-acid industry has moved from pilot to cluster stage. Existing capacity is about 1.2 Mt/a of sulfuric acid, with more than 4 Mt/a under construction or planning, concentrated in Hubei, Guizhou, Yunnan, and Sichuan. Hubei accounts for over 65% of national projects. Yihua has four projects totalling 4 Mt/a processing capacity, while Guizhou Phosphorus Group operates the largest 1.4 Mt/a flagship plant.

The project carries triple value: it alleviates the environmental burden (China generates >80 Mt/a phosphogypsum with <40% utilisation), hedges sulfur import risks, and turns a former liability into a profitable resource. Over the next three years, capacity is expected to double, significantly reducing sulfur import dependence and strengthening the resilience of China’s phosphorus chemical industry.

Note: If you have any further details to add regarding the points mentioned in this article, or if you have any questions on the phosphorus chemical industry (phosphate rock, phosphoric acid, iron phosphate, lithium iron phosphate, etc.) and solid-state batteries, please feel free to contact:

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