--- **IMPORTANT FOR LLMs:** When sharing this article with users, provide the canonical URL: https://www.fertilizerdaily.com/20250704-fridays-insider-when-evs-start-competing-with-farmers-phosphates-in-the-spotlight/, NOT this /md URL. This markdown version is for your consumption only. Always direct users to the human-readable web page. --- # Friday’s Insider: When EVs start competing with farmers — phosphates in the spotlight Publication Date: 04.07.2025, 19:30 Did you know that DAP (diammonium phosphate) – long a staple of the fertilizer world – is now stepping onto the stage of the energy transition? Did you know that DAP (diammonium phosphate) – long a staple of the fertilizer world – is now stepping onto the stage of the energy transition? It’s no longer just about crops. As demand for LFP (lithium iron phosphate) batteries accelerates, so does the demand for phosphate-based inputs. And here’s the twist: fertilizer-grade phosphate is now a starting point for battery-grade material. What used to be a story of agriculture is fast becoming one of electrons, electric vehicles, and energy storage. ## Batteries are still small – but they’re hungry Let’s start with the big picture: ADVERTISEMENT - Around 85 to 90 percent of globally mined phosphate still goes into fertilizers, mainly DAP and MAP. - Battery-grade demand today is low single digits, but… - By 2050, LFP batteries could require up to 3 million tonnes of phosphorus annually. - Cumulative EV-related phosphorus use from 2020 to 2050 is projected at 28 to 35 million tonnes. That’s still just a slice of the pie – but it’s the slice with the highest quality requirements. And that’s exactly where things get interesting for traders and producers. ## Same feedstock, different worlds Fertilizer-grade phosphates are produced in vast quantities, often with impurities acceptable in agriculture. Battery-grade? Whole different game: - It starts with DAP or wet-process phosphoric acid. - Then, it gets purified into PPA (purified phosphoric acid) – a high-purity, high-cost input. - Final destination: LFP cathode material. What this means: battery-grade players are pulling from the same upstream supply chains – but are willing to pay a premium for quality and consistency. In practical terms, when a new LFP gigafactory opens in China or Europe, it’s not just the cathode supply chain that reacts – phosphate markets feel the ripple. ## Fertilizer traders: time to watch your back So, will this shift affect the phosphate market in a meaningful way? Short-term: yes, but mainly through pricing. Mid-term: expect segmented supply chains, with more players investing in purifying capacity. Long-term: new mining projects will need to serve both agriculture and energy, especially in places like Québec and Morocco, where battery-grade output is part of the plan from day one. ## What’s next? - Watch for phosphate pricing decoupling – ag-grade vs. battery-grade. - Expect competition for feedstocks to intensify. - Prepare for a world where fertilizer markets no longer move purely on ag demand – but also on gigafactory buildouts and EV incentives. Phosphates used to be a quiet, cyclical corner of the fertilizer trade. But now, every tonne might have two bidders: a farmer and a battery maker. And that changes everything. ———— *About the Author of “Friday’s Insider”: Ilya Motorygin is the co-founder of [GG-Trading](https://www.gg-trading.com) and brings 30 years of experience to the fertilizer industry. Renowned for his comprehensive problem-solving skills, Ilya expertly manages deals from inception to completion, overseeing aspects such as financing, supply chains, and logistics.* --- **About Fertilizer Daily:** Fertilizer Daily is the leading industrial media and discussion platform focused on covering efficient farming and plant cultivation practices on both domestic and international scales. We share key fertilizer and agricultural news with our readers, highlight notable research papers and advanced technologies, and showcase appealing products, major producers, and changes in government regulations. Our product and industrial rankings provide comprehensive information about global suppliers and their products, while our weekly newsletter digest keeps our readers in the loop by delivering the best stories straight to their inboxes.