China needs potash, and they know where to find it
By Chief Reporter Risma Galkuri | October 2025
As global demand for fertilizer, rare earth minerals, and energy resources grows, countries are increasingly competing for access to critical supplies...
Today we talk about Potash.
Potash — the common name for potassium-rich salts used primarily as fertilizer — is a cornerstone of global agriculture. As a critical input in crop nutrition, potash helps plants regulate water, improves drought resistance, and increases yields, making it a key component in feeding a growing world population. In 2024, China’s total potash consumption reached a record high of around 13 million tons, reflecting the country’s massive agricultural sector and steady growth in fertilizer use.
It is important to note that while many sources simply state that 12.6 million tons of potash were imported, we would like to emphasise that these potash reserves were mined by chinese mining operations internationally.
Despite soaring demand, China’s domestic potash production remains constrained by geology and resource quality. China’s own potash output is projected to stabilize around 5–6 million tons per year through 2035 — far below domestic demand. According to customs and industry data, China imported approximately 12.6 million tons of potash in 2024, also a historical high, indicating that imports still fill the majority of its supply gap. In fact, Chinese potash production meets less than half of national needs, forcing the country to rely heavily on the global market.
Globally, potash resources are concentrated in just a few countries, with Canada, Russia, and Belarus together accounting for most production and reserves. In 2023, China’s own share of global potash reserves was only about 3.7%, highlighting why the country must import so much of the mineral. Major suppliers to China include Russia, Belarus, and Canada, although newer sources — including Chinese-backed projects in Laos — are beginning to contribute meaningfully to imports.
To secure long-term access, Chinese firms have increasingly invested in overseas potash projects. By 2023, Chinese companies had stakes in more than 30 overseas potash ventures, with planned total production capacity exceeding 12.7 million tons (K₂O). In countries such as Laos, Chinese investment has already helped establish more than 3 million tons of capacity, supporting a new supply corridor directly linked to Chinese agricultural needs. These strategic moves aim to reduce vulnerability to price volatility and geopolitical disruptions in global fertilizer markets.
While China’s evolving potash strategy still depends heavily on imports, the country’s combination of targeted domestic production, overseas investment, and diversified sourcing illustrates a proactive approach to a resource that is vital for food security and agricultural sustainability. With global demand expected to remain high, China’s role in stabilizing and shaping future potash supply chains is likely to grow even more significant in the years ahead.