Guizhou Phosphate and Dazhou High-Tech Zone invest ¥4Bn (US$560M) to establish an industrial park for the production of phosphorus-fluorine new materials.

The two companies signed an agreement titled the “Phosphorus-Fluorine New Materials Circular Economy Industrial Park Project Cooperation Agreement.” This project aims to construct a production line capable of producing 50ktpy of high-purity anhydrous hydrogen fluoride (AHF) and 40ktpy of electronic-grade hydrofluoric acid (eHF). These products will be manufactured using a method independently developed by Guizhou Phosphorus Chemical, which processes fluosilicic acid into anhydrous hydrogen fluoride.

Once completed, the project will create a fully integrated industrial chain that encompasses phosphate ore, phosphoric acid, hydrogen fluoride, and new energy materials. Additionally, the project will establish a direct connection with Honeycomb Energy lithium battery industrial park in Dazhou. This connection is expected to lower transportation costs for raw materials, increase the localisation rate of fluorine resources, and integrate with Honeycomb Energy's battery recycling system. Together, these components will form a closed-loop recycling system involving phosphate ore, fluorine resources, and lithium resources.

The fluorine market is undergoing transformation due to a reduced supply of traditional fluorine resources. This scarcity has prompted industries to explore alternative sourcing options, particularly through the extraction of fluorine from phosphate rocks, which are more abundant and accessible. A similar project is underway in Morocco, where a company called FluorAlpha is constructing production lines to produce 20ktpy of anhydrous hydrogen fluoride (AHF) and 30ktpy of aluminium fluoride (AlF3) utilising a process that produces fluorosilicic acid to derive fluorine material from phosphate rocks (see 28 May 2025 article).

These projects will aid in meeting the rising demand for HF and AlF3, while also enhancing the sustainability of fluorine production by utilising phosphate resources responsibly.