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:

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