US Elevates Phosphorus and Glyphosate to National Priority
On February 18, 2026, U.S. President Donald Trump signed an executive order elevating elemental phosphorus and glyphosate-based herbicides to national security priorities, underscoring their strategic importance to both defense readiness and food security.
According to the executive order, elemental phosphorus is deeply embedded in the U.S. defense supply chain and is critical to military preparedness. It is a key raw material in smoke, illumination and incendiary devices, and an essential component in semiconductor manufacturing. Semiconductors underpin a wide range of defense technologies, including radar systems, solar cells, sensors and optoelectronic equipment. Elemental phosphorus is also playing an increasingly important role in modern lithium-ion battery chemistries, which are integrated into the supply chains of various weapons systems.
In recognition of its strategic value, the U.S. Department of the Interior designated phosphate as a critical mineral on November 7, 2025, pursuant to the Energy Act of 2020.
Phosphorus is also a core feedstock for glyphosate, the most widely used crop protection tool in U.S. agriculture. Glyphosate enables American farmers to produce food and livestock feed efficiently and at scale, reinforcing the resilience of the national food supply.
At present, the United States has only one domestic producer of elemental phosphorus and glyphosate-based herbicides: Bayer. However, its production capacity is insufficient to meet annual domestic demand. As a result, the U.S. imports more than 6 million kilograms of elemental phosphorus each year.
Meanwhile, Monsanto, a subsidiary of Bayer, has reached a nationwide class-action settlement in the United States related to glyphosate cancer litigation. The settlement amount could total up to $7.25 billion, with installment payments extending for as long as 21 years.
Taken together, any disruption in the supply of either phosphorus or glyphosate could expose vulnerabilities in the U.S. defense industrial base and agricultural system, amplifying strategic risk at a time of heightened geopolitical uncertainty.
Strategic Significance of Phosphorus in the Global Chemical Industry
Washington's renewed emphasis on phosphorus also highlights the scarcity and strategic value of global phosphate resources. As a major player in the phosphorus chemical industry, China may face new development opportunities amid shifting global supply dynamics.
Within the phosphorus chemical value chain, phosphate rock serves as the core upstream raw material. It is processed into phosphoric acid, which is then further reacted with other chemical inputs to produce phosphate fertilizers, industrial phosphates and a range of downstream chemical products. Typically occurring in phosphate form, phosphate rock forms the foundational resource base of the entire phosphorus industry.
In 2016, China issued the National Mineral Resources Plan (2016–2020), placing phosphate rock on its strategic minerals list alongside 24 other key resources, including petroleum and natural gas.
On the demand side, the rapid expansion of the new energy sector — particularly lithium iron phosphate (LFP) batteries — is reshaping phosphate consumption patterns. According to relevant forecasts, China's new energy vehicle sales are expected to reach 19 million units in 2026, representing a year-on-year increase of 15.2%. Rising EV demand is expected to drive upstream demand for lithium iron phosphate and related materials.
Operating rates across key phosphorus-based battery materials have climbed sharply. Iron phosphate plant utilization increased from 58% in January 2025 to 75% in October, while lithium iron phosphate operating rates rose from 41% to 72% over the same period. Lithium hexafluorophosphate utilization also surged from 43% to 80%.
As capacity expansion accelerated, product prices rebounded strongly. The price of lithium hexafluorophosphate rose from RMB 60,000 per tonne at the beginning of 2025 to approximately RMB 170,000 per tonne in December. Lithium iron phosphate prices increased from RMB 36,000 per tonne to above RMB 40,000 per tonne, reflecting sustained downstream demand growth.
In addition, energy storage has emerged as another major growth driver. In 2026, energy storage battery cell shipments may approach a new milestone of 800 GWh, with the sector expected to maintain medium-to-high growth momentum.
Against this backdrop, phosphorus is increasingly positioned at the intersection of national security, agricultural stability and the global energy transition, reinforcing its status as a critical strategic resource in the evolving geopolitical and industrial landscape.