South Korean battery manufacturer “LG Energy Solution” signed a MoU with Chinese Yahua Industrial Group to process lithium hydroxide in Morocco, announced LG Energy Solution in a statement on Wednesday.
The Korean company aims to further strengthen its supply chain for lithium hydroxide, it said.
“Given that Morocco is a Free Trade Agreement (FTA) partner with the U.S. and EU, LG expects to be able to strengthen its supply chain for lithium hydroxide, a key material for cathodes,” said the company.
Morocco signed a free trade agreement with the USA, which will allow LG Energy Solution to respond more flexibly to different commercial needs while targeting the European market.
Lithium hydroxide is one of the lithium compounds used in batteries, an alternative would be lithium carbonate.