Citic Securities: Focus on the continuous improvement of the strategic position of phosphorus resources.

CITIC Securities' research report indicates that the market's focus on phosphorus materials began with lithium iron phosphate/lithium iron phosphate in 2021, when phosphorus elements were still centered around the industry chain represented by phosphate ore-phosphate fertilizer/glyphosate. With the increasing importance of phosphorus combined with mineral resources + fertilizer supply + the competitive landscape of phosphorus materials, a significant event this year was when the US and China successively classified phosphate ore and phosphorus as national strategic resources in February and June, respectively, reevaluating their strategic positions. Products such as phosphorus trichloride, phosphorus pentachloride, dimethyl/ diethyl phosphite have been included in the list of dual-use item export controls. On one hand, under the background of "de-sinification," the replacement of domestic phosphorus new materials is expected to accelerate; on the other hand, the resonance of AI, semiconductors, and new energy demand is expected to occur, such as high-purity red phosphorus as the core material for indium phosphide substrates, high-purity yellow phosphorus can be used to produce electronic-grade phosphoric acid and battery-grade P2S5, electronic-grade sodium metaphosphate as the core reducing agent for chemical nickel plating, widely used in the manufacturing of storage chips, PCBs, and high-end carriers.