Summary：
China's fluorochemical market expanded in
2024, with LiFSI shipments up 100%+ and 70% global fluorite output. Exports
rose but faced policy curbs; prices of lithium hexafluorophosphate fluctuated.
Ganfeng/Tianqi advanced projects. Risks include overcapacity; opportunities lie
in LiFSI and aluminum fluoride growth.
I. Overall Industry Trends
China's fluorochemical market continues to
expand, reaching 9.158 million tons in 2024 with significant year-on-year
growth. Fluorinated new materials are seeing rapid adoption in the new energy
sector (lithium batteries, photovoltaics, hydrogen fuel cells). For example,
lithium bis(fluorosulfonyl)imide (LiFSI) shipments hit approximately 30,000
tons in 2024, a year-on-year increase of over 100%, making it a core material
to replace lithium hexafluorophosphate. China accounts for 70% of global
fluorite production (approximately 6.7 million tons in 2024), underpinning its
advantage in the fluoride industrial chain.
II. Import-Export and Sales Dynamics
China's Export Performance
From January to April 2025, China's
hydrogen fluoride exports reached 84,400 tons, up 12% year-on-year, but a 2.20%
month-on-month decline in April reflected short-term market volatility.
Exports of lithium battery materials are
significantly impacted by policy: China plans to restrict exports of high-end
lithium iron phosphate (LFP) and lithium manganese iron phosphate (LMFP)
preparation technologies from January 2025, covering core parameters such as
powder tap density ≥2.58g/cc, which may affect overseas factories' access to
such technologies.
International Market Developments
The U.S. Department of Commerce announced
preliminary anti-subsidy rulings on Chinese anode materials on May 24:
Non-responding enterprises face tariffs of 712.03%-721.03%, while others face a
6.55% rate. Although the U.S. initially demanded a 920% tariff, the final rate
was significantly reduced, indicating strong U.S. reliance on Chinese anode
materials (approximately 60% of imports originate from China).
The EU is strengthening controls on per-
and polyfluoroalkyl substances (PFAS), promoting the development of
non-fluorinated alternatives, but short-term demand for fluorides still relies
on traditional materials.
III. Price Trends
Lithium Fluoride Materials
The price of lithium hexafluorophosphate
rebounded significantly in May, surging to CNY 142,000/ton on May 16 (+21.37%
from the previous day), with a cumulative increase of 67.06% in May. This was
mainly driven by inventory depletion and recovering downstream electrolyte
demand. However, some platform quotations showed a decline to CNY 68,000/ton by
May 27, reflecting drastic market volatility.
Aluminum Fluoride Materials
The global aluminum fluoride market is
projected to grow from USD 2.426 billion in 2025 to USD 3.167 billion in 2035,
with a CAGR of 2.7%, driven by demand from lightweight vehicle development.
Prices for aluminum fluoride (AF-1 grade) in Gansu Province remain unspecified,
but Mysteel data indicates low market volatility.
IV. Supply Chain and Capacity Dynamics
Leading Enterprise Strategies
-
Ganfeng Lithium: The first phase of
its Mariana salt lake project in Argentina (20,000 tons/year lithium
chloride capacity) started production in February 2025, with a resource
volume of 8.12 million tons LCE (lithium carbonate equivalent), optimizing
its global lithium resource layout. In Q1 2025, its revenue fell 25.43%
YoY to CNY 3.772 billion, but gross profit margin improved to 12.95%,
indicating better cost control.
-
Tianqi Lithium: Q1 2025 is expected
to turn profitable, with YoY growth in production and sales of lithium
compounds and derivatives. Its Chongqing Tongliang base is deploying 600
tons/year metallic lithium capacity for solid-state batteries.
Policy and Technical Impacts
China's export control policies require
salt lake lithium extraction technologies (e.g., Ganfeng's Argentina project)
to apply for export licenses, potentially delaying overseas project progress.
The U.S. is promoting domestic lithium
battery industrial chain development, with Tesla, BMW, and others accelerating
mass production of 4680 large cylindrical batteries, driving demand for
high-purity fluorides.
V. Risks and Trends
Challenges:
Overcapacity in lithium hexafluorophosphate (operating rate <70%), and
rising costs for Chinese anode material exports may impact global supply
chains.
Opportunities: LiFSI penetration is expected to exceed 2% in 2025. In Europe's
new energy transition, aluminum fluoride demand will grow with lightweight
vehicle development, with market size projected to increase from USD 2.426
billion to USD 3.167 billion in 2025-2035 (CAGR 2.7%).
Data Sources:
China Customs Administration, Mysteel, CCM
More information can be found at CCM Fluoride Material China Monthly Report.
About CCM:
CCM is the leading market intelligence provider for China's agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.
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