LG Energy Solution (LGES) signed an agreement to procure lithium from a producer based in Morocco, as the South Korean electric vehicle (EV) battery manufacturer looks to diversify its sourcing of battery minerals to help its customers qualify for government incentives in various global markets.
LGES, the world’s largest EV battery manufacturer outside China, said it had signed a memorandum of understanding (MoU) with Chinese lithium producer Yahua Industrial Group to source lithium hydroxide from its operations in the North African country.
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Morocco has free trade agreements with both the US and the European Union (EU), which has yet to develop a significant lithium mining and processing industry. LGES is building significant battery production capacity in North America and Europe, with a large number of plants scheduled to come on stream from 2025. In February the company also agreed to build an EV battery plant in Turkey with Ford.
The agreement with Yahua would help strengthen LGES’ lithium hydroxide supply chain, which is a key material used in battery cathodes, by allowing it to respond more flexibly to any changes in the external business environment and new regulations such as under the US’s Inflation Reduction Act (IRA) and the EU’s Critical Raw Materials Act (CRMA).
An LGES spokesman said in a statement: “We have secured a stable supply of high quality lithium hydroxide from Yahua which has excellent manufacturing technology.”
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