LG Chem and Huayou Group of China will construct an LFP (lithium-phosphate-iron) cathode material plant in Morocco to commence mass production in 2026, benefiting from the country’s free trade agreement with the USA, as reported by daily English-speaking newspaper “The Korea Times.”
Under a memorandum of understanding signed on September 22, LG Chem and Huayou Group will collaborate to establish four facilities. These include the LFP cathode material plant and a lithium conversion facility in Morocco, as well as a high-pressure acid leaching (HPAL) plant and a precursor factory in Indonesia.
“We will actively address the burgeoning LFP cathode material market, using the Morocco plant as our global foundation. Our objective is to construct a robust, vertically integrated materials supply chain, encompassing everything from raw materials to precursors and cathode materials, solidifying our status as the world’s leading comprehensive battery materials producer,” said CEO of LG Chem Shin Hak-cheol.
The two firms will establish an LFP cathode joint venture in Morocco with an annual production capacity of 50,000 tons. This volume of LFP cathode materials can manufacture 500,000 entry-level electric vehicles with a driving range of 350 kilometers per single charge.
The Morocco-based plant will focus on producing LFP cathodes destined for the North American market. LG Chem emphasized that LFP cathode materials manufactured at the Moroccan plant will benefit from subsidies under the U.S. Inflation Reduction Act (IRA), as Morocco is a signatory to the U.S. Free Trade Agreement (FTA).
LG Chem also intends to expand its footprint in the LFP cathode materials sector beyond the Moroccan plant, venturing into lithium-manganese-phosphate-iron (LMFP) cathode materials.
LG Chem and Huayou Group plan to promote the lithium conversion facility in Morocco, responsible for extracting lithium hydroxide and lithium carbonate.