First US phosphate fertiliser plant since 1984: Morocco’s OCP and CHS plan $450 million, 1-million-tonne Louisiana factory with nearly 1,000 jobs

Morocco’s OCP and US farmer-owned cooperative CHS plan a $450 million Louisiana phosphate fertiliser plant, the first of its kind in America since 1984. The facility could produce more than 1 million tonnes annually, reduce phosphate import depend...

The proposed joint venture, announced on August 26, would be located at the Cornerstone Energy Park in Waggaman, Louisiana

The first US phosphate fertiliser plant since 1984 could be built in Louisiana, with Morocco’s OCP North America and CHS, the largest farmer-owned cooperative in the US, planning a $450 million facility capable of producing more than 1 million tonnes of phosphate-based fertiliser annually, according to Business Insider.

The project is expected to create around 500 construction jobs and 60 permanent positions, while the companies estimate its wider economic impact could support about 924 direct and service-related jobs. The proposed joint venture, announced on August 26, would be located at the Cornerstone Energy Park in Waggaman, Louisiana.

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The companies announced the proposed joint venture on August 26, saying the plant would be the first of its kind built in the US in more than four decades if it receives the necessary approvals and is completed.

Where will the new phosphate plant be built?

The proposed factory would be located at the Cornerstone Energy Park in Waggaman, Louisiana, near the Mississippi River. Its location would provide access to one of the country's most important agricultural transportation networks, allowing raw materials to reach the facility and finished fertiliser to be distributed to farming regions.

First US phosphate fertiliser plant
<p>The proposed factory would produce more than one million tonnes of phosphate-based fertiliser annually<br></p>

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OCP Group would supply phosphoric acid to the plant. The acid is made from phosphate rock and is a key ingredient in fertiliser used for crops including maize, wheat and soybeans. Finished products would be distributed through OCP North America and CHS's network of agricultural cooperatives, retailers and farmers.

Morocco’s phosphate, American manufacturing

The project would connect Morocco's vast phosphate resources with US fertiliser manufacturing. Morocco has the world's largest known phosphate-rock reserves, while OCP has grown into one of the world's leading phosphate fertiliser suppliers.

Instead of supplying only finished fertiliser to the US, OCP would provide phosphoric acid for manufacturing inside the country. That would give OCP a larger presence in one of the world's biggest agricultural markets while giving CHS another source of phosphate fertiliser.

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Could the plant reduce US fertiliser imports?

The companies say the US currently imports approximately 40% of the phosphate fertiliser required by American farmers. They estimate that the proposed Louisiana plant could reduce that import dependence by more than 48%.

First US phosphate fertiliser plant
<p>The project would connect Morocco's vast phosphate resources with US fertiliser manufacturing<br></p>

However, that figure is a company projection and has not been independently tested. The plant would also continue to rely on phosphoric acid supplied from Morocco. So while more finished fertiliser would be produced in the US, the entire supply chain would not become domestic.
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Why the project matters

The proposed plant comes as countries look to strengthen fertiliser supplies after disruptions linked to wars, sanctions, energy costs and export restrictions. Phosphate is one of the three major nutrients used in commercial fertiliser, alongside nitrogen and potassium.

A new large-scale US production facility could therefore give American farmers an additional source of phosphate fertiliser while reducing some dependence on imported finished products.

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Construction and approvals

The project still needs funding, regulatory reviews, engineering work and other approvals. OCP and CHS have not yet made a final investment decision. The companies have applied for possible support through the US Department of Agriculture's Fertilizer Investment and Expansion for Long-term Domestic Supply programme.

If approvals are secured, construction is expected to take up to 24 months. The partners have not disclosed the ownership split, investment contributions or a firm opening date.

The project ultimately represents a shift in the US fertiliser supply chain: Moroccan phosphate resources would continue to play a central role, but more of the manufacturing would happen on American soil.
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