LG Chem Ltd confirmed that it plans to partner with China’s Huayou Group’s subsidiary Youshan to build an electric vehicle (EV) battery material plant in Morocco. Known for manufacturing nickel-cobalt-manganese (NCM) cathodes, LG Chem is looking to diversify its portfolio.
Unlike the NCM cathodes, the factory will produce lithium-phosphate-iron (LFP) cathode materials. The South Korean chemical maker stated that it’s looking to produce 50,000 LFP materials annually at the plant – enough to install in 500,000 entry-class EVs. Production at the facility is slated to begin in 2026.
The South Korean company explained that the LFP materials produced at the Moroccan plant will be supplied to the North American market and will be eligible to receive subsidies under the U.S. Inflation Reduction Act (IRA) because Morocco is a free-trade partner with the United States.