What's Happening?
China's sulphuric acid exports plummeted by 99% in June 2026, causing significant disruptions in global supply chains for battery metals. This decline is part of a broader trend, with exports decreasing by 49% to 75% year-on-year in the first half of 2026.
The reduction in exports is attributed to China's focus on domestic fertiliser production amid sulphur supply disruptions. Key countries like Chile and Indonesia, which rely heavily on Chinese sulphuric acid for copper and nickel processing, are facing severe supply shortages.
Why It's Important?
The drastic reduction in China's sulphuric acid exports has far-reaching implications for global industries, particularly those involved in battery metal production. Chile and Indonesia, major players in copper and nickel production, are experiencing significant supply chain disruptions. This could lead to increased costs and production delays, affecting the global supply of essential battery materials. The situation underscores the vulnerability of global supply chains to geopolitical and policy changes in major exporting countries like China.
What's Next?
Countries affected by the export reduction are likely to seek alternative sources of sulphuric acid, potentially leading to increased demand and prices from other suppliers like Japan and South Korea. There may also be a push to develop domestic production capabilities to reduce dependency on Chinese exports. The ongoing situation could prompt strategic shifts in how countries manage their critical mineral supply chains, with potential long-term impacts on global trade and industry practices.
