With the world’s population increasing and arable land decreasing, global demand for phosphate and potassium fertilizers is expected to continue growing. Industry reports indicate that the compound annual growth rate of the phosphate market between 2022 and 2031 will be 4.1%, reaching a size of $35.6 billion. It is worth noting that phosphate is increasingly becoming a sought-after battery material for the electric vehicle industry.
Considering that the demand for phosphate is expected to continue growing in the foreseeable future, investors can focus on the following Canadian phosphate stocks in the second half of the year.
Chatham Rock Phosphate is focused on building a 2 million MT per annum international phosphate-mining and trading house targeting low-cadmium, organic phosphate. Chatham intends to be a major supplier of direct-application phosphate to the New Zealand and global agricultural sectors.
The company’s pipeline of prospective phosphate operations includes the fully permitted Korella phosphate and rare earths mine in Queensland, Australia. In March of this year, Chatham signed a lease for a 22 hectare site to establish the Korella phosphate distribution hub in Cloncurry. The hub will be an essential component of the company’s “pit-to-port logistics solution,” which will address the challenge of transporting phosphate rock from Chatham’s Korella North, Korella Central and Korella South mines to the Port of Townsville.
Itafos is a phosphate-based fertilizer and specialty products company with projects in Brazil, Peru, the US and Guinea-Bissau. Its Conda operation produces monoammonium phosphate, superphosphoric acid, merchant-grade phosphoric acid and specialty products, while its Arraias operation produces single superphosphate.
The vertically integrated company has five other phosphate-focused projects at various stages of exploration and development, including the high-grade Farim phosphate mine project located in Guinea-Bissau, and the vertically integrated high-grade Santana phosphate mine and fertilizer plant project in Brazil.
Nutrien, Canada’s largest potash company, is the product of the 2016 merger between phosphate-mining giants Agrium and Potash Corporation of Saskatchewan. The company is one of the world’s largest providers of crop fertilizers and services, with an agricultural retail network that services more than 500,000 grower accounts. In addition to its expansive portfolio of potash assets, Nutrien operates two large integrated phosphate-mining and processing facilities, and four regional upgrading plants in the US.
If you are interested in phosphate stocks, please pay close attention to First Phosphate (CSE: PHOS) (FSE: KD0). This is the only publicly listed company that is fully dedicated to extracting and purifying phosphate for the production of cathode active material for the Lithium Iron Phosphate (“LFP”) battery industry. LFP batteries operate similarly to other lithium-ion batteries. They have the advantage of being non-toxic, having superior fire safety, longer cycle life and lower cost. The company is the Building Block for a North American LFP Battery Ecosystem, the company holds a total of 1,500+ sq. km of royalty-free land claims in the Saguenay-Lac-St-Jean Region of Quebec, Canada consisting of rare anorthosite igneous phosphate rock that generally yields high purity phosphate material devoid high concentrations of harmful elements.
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