Skip to main content

'The Growth is Incredible' - Why Phosphate and LFP Batteries Are Dominating

Commodity Culture Aug 19, 2026

Summary

Igneous phosphate's 91% conversion to battery-grade acid gives it a structural edge over sedimentary sources for LFP.

Phosphate makes up 61% of an LFP cathode versus just 4% lithium — LFP growth pulls phosphate demand along almost 1:1.

China makes roughly 99% of LFP batteries; G7 wants no supply chain over 60% concentrated in one country by 2030.

Quebec fast-track permitting plus Danish and Italian offtake letters at the G7 mark a coordinated Western push to onshore LFP.

Phosphate exposure is far more concentrated than lithium — 150+ lithium names but First Phosphate claims to be the only pure-play igneous LFP supplier.

John Passalacqua's takeaways

  • Top takeaway Passalacqua argues that igneous phosphate is structurally superior for LFP batteries, citing a 91.1% conversion ratio into purified phosphoric acid versus only 10-30% for sedimentary phosphate, which he notes is contaminated with cadmium, uranium, and thorium.
  • He contends LFP will continue to dominate battery chemistry, citing 81% of Chinese EV battery installations in April 2026 and 95% of new utility-scale battery contracts, and frames sodium-ion and silver battery alternatives as unproven versus the LFP track record.
  • He argues North America must onshore LFP production because roughly 99.9% of LFP batteries are currently made in China, and positions First Phosphate's mine-to-market strategy as the Western supply chain alternative.
  • Passalacqua notes phosphate is 61% of an LFP cathode (versus ~4% lithium and ~35% iron), so phosphate demand growth tracks almost 1:1 with LFP cathode active material demand, with Chinese LFP demand reportedly growing 25-60% quarter over quarter.
  • He claims First Phosphate is the only public company he is aware of that is 100% dedicated to high-purity igneous phosphate for the LFP battery industry.

Johnny Kovacevich's takeaways

  • Top takeaway The host describes Johnny Kovacevich as 'very bullish on First Phosphate and the phosphate market in general' and credits him with raising the igneous-versus-sedimentary phosphate distinction that the guest then expands on.