AMMAN — Global demand for yellow phosphorus is rising sharply across industries, yet high energy costs remain the main barrier preventing Jordan from entering large-scale production, according to Head of Research and Development at the Jordan Phosphate Mines Company (JPMC) Mohammad Meqdadi.

 

Speaking to The Jordan Times, Meqdadi noted that global production of yellow phosphorus is limited and largely monopolised by a few countries, some of which use most of their output domestically. “Production is not exceedingly high, around 1.5 million tonnes annually, while demand remains particularly strong in the automotive and battery sectors,” he said.

 

Meqdadi said that Yellow phosphorus serves as a critical raw material in a wide range of industries, including food production, pharmaceuticals, electronics, fertilisers, and battery manufacturing. “Its importance extends beyond yellow phosphorus itself to its derivatives, which makes it a globally strategic commodity,” he added.

 

Jordan’s phosphate advantage

 

Meqdadi highlighted that yellow phosphorus can be produced from both high- and low-grade phosphate, with low-grade being preferable due to its silica content. “Jordan possesses large quantities of both types in various sizes and volumes sufficient to meet the needs of this industry, which gives it a competitive advantage,” he explained.

 

Producing yellow phosphorus, however, is highly resource-intensive. Each ton requires approximately 11 tonnes of phosphate. Most plants produce between 20,000 and 50,000 tons annually, while the largest factories can reach up to 100,000 tonnes.

 

Energy costs: The decisive factor

 

“Yellow phosphorus production is extremely energy-intensive, requiring high-temperature furnaces similar to welding,” Meqdadi said. Producing one tonne consumes around 15 megawatts of energy.

 

While Jordan has the technical expertise, raw materials, and capital needed, electricity costs present the main challenge. “The lowest electricity price in Jordan is 7 piasters per kilowatt-hour, but for such high consumption projects, costs may rise to around 12 piasters, accounting for more than 70 per cent of total project costs,” he explained.

 

This puts Jordan at a disadvantage compared with competitors. “In Saudi Arabia and East Asian countries, energy costs are around 3–4 piasters per kilowatt-hour, which makes them far more attractive to investors,” he said.

 

Renewable energy alone is not a viable alternative, Meqdadi noted. “A yellow phosphorus plant costs about $50–60 million, but powering it entirely with solar energy would require vast land areas and costly infrastructure, pushing investment into the hundreds of millions. That makes the project unfeasible,” he said.

 

Profitability and investor interest

 

Despite these challenges, the revenue potential remains considerable. In Q2 2025, yellow phosphorus prices in the US reached $4,520 per ton, compared with a phosphate input cost of just $60–70 per tonne. Excluding energy, the production cost per ton is about $700. However, electricity alone adds over $1,400 per tonne, in addition to labour, transport and insurance.

 

Jordan’s regulatory framework for energy remains under discussion. “The government recently allowed solar projects to connect to the national grid under certain conditions, with zero feed-in. Some regulatory requirements remain unclear, but this could be a step towards improving competitiveness,” Meqdadi noted.

 

Investor interest has been strong since JPMC signed an MoU with Mitsubishi in 2019. “It is not only Mitsubishi; there are Chinese, Indian, Korean, and Japanese companies interested,” Meqdadi said, pointing to the growing demand for battery materials driven by the global shift to electric vehicles.

 

His Majesty King Abdullah has also stressed the strategic importance of developing the lithium battery industry using local phosphorus resources.

 

Phosphoric acid and industrial diversification

 

Currently, Jordan produces phosphoric acid, but its purity is too low for technological applications and is mainly used in fertilisers. “High-purity phosphoric acid, required for batteries, can only be produced through yellow phosphorus,” Meqdadi noted. “While it can be refined to technical grade for food applications, achieving electronic-grade purity, which is essential for batteries and electronics, requires yellow phosphorus. Jordan does not produce it today because of the high cost of electricity.”