ICL JV YPH | China

ICL's subsidiary in China, YPH, holds two phosphate mining licenses from the Division of Land and Resources of China’s Yunnan District. In 2022, YPH was awarded a Green Mine certification from Chinese authorities (ranked AAAAA) for excellence in mine planning, operations and mine remediation. \

PRODUCTS & RAW MATERIALS

kt = THOUSANDS OF TONNES

RAW ORE

3.22 mt

PHOSPHATE ROCK

2,497 kt

GREEN PHOSPHORIC ACID

676 kt

FERTILIZERS

611 kt

WHITE PHOSPHORIC ACID

94 kt

Specialty Fertilizers

92 kt

We expect to increase our production of food-grade WPA to better serve local food and industrial applications markets in the near future. We also expect to increase our sales of battery grade MAP to the rapidly growing lithium iron phosphate (LFP) battery market in China.

In 2022, YPH became one of the most important phosphate suppliers to the fast-growing LFP industry in Yunnan, China.

YPH, equally owned by ICL and Yunnan Phosphate Chemicals Group Corporation Ltd. (“YYTH”), and controlled by ICL, owns, and operates the Haikou Phosphate Mine and processing site in the Xishan district of China. YPH holds two phosphate mining licenses, including a mining license for the Haikou Mine covering 9.6 km2, which the Company operates.

The phosphate deposits at both mines are part of an extensive marine sedimentary basin in which the phosphate is situated in two layers.

The mining method used in the Haikou Mine is conventional and conducted by open mining using drilling, blasting, hydraulic excavators, mining trucks and tractors.

In the first stage, mining of the upper ground level is stripped and stored or spread out over mined areas for purposes of reclamation. In the second stage, drilling, blasting, and stripping of the upper overburden level is executed. In the third stage, mining of the phosphate is performed by drilling and blasting every layer separately (between which an interburden layer exists, having a thickness of 11 meters, which is also drilled, blasted, and stripped). The phosphate is then loaded on trucks and transported to beneficiation plants.

The phosphate is a low organic type, and as such it is suitable for phosphoric acid production. Close to the Haikou Mine, there are two beneficiation sites: flotation and scrubbing. These sites are accessible by road, and the scrubbing site is accessible by road and rail. The output of these sites is designated to produce acids and fertilizers and is located several kilometers from the Haikou Mine. The site itself has four sulfuric acid production plants; three green phosphoric acid plants, one plant for the manufacturing of technical grade white phosphoric acid, one plant for manufacturing of food grade white phosphoric acid and six additional fertilizer plants. These production plants are powered by electricity generated from the sulfuric acid production process, as well as from the national power network. These production plants have been continuously developed and maintained over the past 40 years and are in a good condition. Access to the production plants is by road and rail.

Using Phosphogypsum

As part of Circular Economy efforts in China, the Company develops a variety of different uses for Phosphogypsum, which is its only by-product that has not yet been fully utilized. In addition to the existing solutions that were already developed and implemented, the Company has developed together with the local authorities, a solution for the rehabilitation of old mines and a new solution to integrate phosphogypsum into road paving material. During 2022, the Company initiated a pilot project that successfully utilized more than 4 million cubic meters of phosphogypsum.

For further information regarding our concessions in China, including royalties, mining licenses, rights, and other matters, and for descriptions of certain risks relating to our operations in China, see Note 18 of our 2022 Annual Report and Item 3 — Key Information — D. Risk Factors, respectively.

Part of The Energy Storage Value Chain

During 2021, we entered the Electric Vehicle (EV) market segment through the sale of phosphate based raw materials for the production of lithium iron phosphate (LFP) batteries in China. We expect to grow this business in the coming years by increasing production capacity, adding global capacity and R&D collaborations and by developing additional downstream capabilities.

Zero Discharge @ YPH in China

Since 2009, YPH has been conducting a major project designed to eliminate all wastewater output. “Zero Discharge” was achieved through cascade and grade utilization, recycling collection, reuse systems and other actions. Despite the addition of YPH to our reporting scope in 2016, the total ICL wastewater amounts remained almost the same in 2016-2017 when compared with 2015. This has also enabled a significant decrease in wastewater intensity, resulting from phosphate production.

YPH in China strives to continuously improve the environmental aspects of its operations and products. Adhering to the principle of "protection with development, development with protection", YPH attaches great importance to mine reclamation, with a reclamation rate of more than 90%.

Sustainability Reporting Disclosures:

Disclosure: 301-1