LG Chem Partners with Chinese Firm to Build EV Battery Plant in Morocco

LG Chem will build with the Chinese Youshan a lithium-iron-phosphate (LFP) cathode materials factory in Morocco. The factory is expected to start operations in 2026 and produce 50,000 metric tons of this material per year, the South Korean company said in a statement cited by Daily mail.

This is the first time that LG Chem, which specializes in the manufacture of more expensive nickel-cobalt-manganese (NCM) cathodes, is launching the production of cheaper LFP cathodes. The LFP cathodes that will be produced in the Moroccan factory will be destined for the American market and will be subsidized up to $3,750 per vehicle, in accordance with the US Inflation Reduction Act (IRA), as Morocco and South Korea have signed a free trade agreement with the United States.

The South Korean company also plans to build with Huayou Cobalt a lithium conversion plant in Morocco. It should start its activities by 2025 and produce 52,000 tons of lithium per year.