How is the ferrous sulfate market being reshaped by the lithium iron phosphate boom?

How is the ferrous sulfate market being reshaped by the lithium iron phosphate boom?
Ferrous sulfate demand is undergoing a structural shift. In 2025, domestic Chinese demand reached roughly 4.68 million tons, with the lithium iron phosphate (LFP) sector alone consuming 2.92 million tons, or 62.3% of the total. That share is projected to rise to 3.19 million tons in 2026. This transformation elevates ferrous sulfate from a byproduct of titanium dioxide production to a critical feedstock for the new energy supply chain. The economics are compelling: ferrous sulfate offers a low-cost iron source for LFP makers. This demand pull is prompting major integrated investments, such as a 55.38 billion yuan project combining 400,000 tons of titanium dioxide capacity with 1.4 million tons of ferrous sulfate heptahydrate output, designed to feed the phosphate-iron-lithium loop.