Environmental Protection-Driven Production Restrictions Hit Hubei’s

SMM December 18 News:

Key Points: Since December 12, 2025, emergency controls have been implemented in key phosphorus chemical industry hubs such as Yichang and Jingmen in Hubei Province due to air pollution, compounded by the Yangtze River Protection Policy. This has resulted in 30% of small and medium-sized enterprises suspending production, while top-tier enterprises have cut production by 20%–30%. The supply of new energy raw materials, including industrial-grade monoammonium phosphate (MAP), which accounts for over 50% of the national total, has tightened, providing short-term price support and leading to continued cost increases for the new energy industry.

In December 2025, emergency controls were initiated in key phosphorus chemical industry hubs such as Yichang and Jingmen in Hubei Province due to air pollution, coupled with the Yangtze River Protection Policy. As a result, 30% of small and medium-sized enterprises suspended production, while top-tier enterprises implemented production cuts of 20%–30%. The supply of new energy raw materials, including industrial-grade MAP accounting for over 50% of the national total, has tightened, providing short-term price support and driving further cost increases in the new energy sector.

I. Core Event Timeline and Impact Scope: Environmental Protection
Since December 2025, Hubei Province has experienced regional air pollution episodes, with air quality in multiple areas including Yichang, Jingmen, and Jingzhou consistently ranging from light to moderate pollution levels. PM2.5 concentrations repeatedly exceeded the Grade II standard limits, triggering yellow alerts for heavy pollution weather in some regions. As one of the pillar industries in the area, the phosphorus chemical sector—due to emissions of particulate matter and volatile organic compounds during production—became a key target for emergency emission reduction controls.

In terms of impact scope, the production cuts and suspensions were characterized by concentration in core production areas and priority control over new energy-related capacity. In key industrial parks such as the Yichang Yaojiagang Chemical Park and Jingming Chemical Recycling Park, approximately 30% of small and medium-sized phosphorus chemical enterprises have completely halted production, while top-tier enterprises have implemented varying degrees of production cuts ranging from 20% to 50%. Among these, the supply capacity of industrial-grade MAP and purified wet process phosphoric acid, which directly serve the LFP industry chain, was most significantly affected, with an immediate supply decline of about 25%. Although LFP and LFP producers have not yet faced direct production restrictions, inventory alerts have been triggered due to tightened upstream raw material supply.

According to the emergency emission reduction measures table from the 2021 “Hubei Province Heavy Pollution Weather Performance Classification and Emission Reduction Measures for Inorganic…