LG Chem to Build LFP Cathode Plant in Morocco

LG Chem announced it will establish a lithium-iron-phosphate (LFP) cathode materials facility in Morocco jointly with Chinese Huayou Group. Additionally, LG Chem will begin vertical integration of its cathode supply chain. LG Chem and Huayou Group signed a comprehensive memorandum of understanding (MOU) to jointly enter the LFP cathode materials market and strengthen their cathode supply chains. The parties will work together to build a total of four facilities: an LFP cathode materials facility and a lithium conversion facility in Morocco, as well as a high-pressure acid leaching (HPAL) facility and a pilot facility in Indonesia. Chief Executive Officer Shin Hak-cheol said, "With our facility in Morocco serving as our global hub, we will actively respond to the growing LFP cathode materials market. Our goal is to build a strong, vertically integrated materials supply chain spanning from raw materials to precursors and cathode materials, and to solidify our position as the world's most comprehensive battery materials manufacturer." LG Chem and Youshan, a subsidiary of Huayou Group, will construct an LFP cathode materials facility in Morocco, which holds the world's largest phosphate rock reserves. The facility, with an annual capacity of 50,000 metric tons planned to commence mass production by 2026, is expected to meet growing demand for LFP cathode materials, which have gained popularity due to price competitiveness compared to nickel-cobalt-manganese (NCM) cathodes. The 50,000 tons of LFP cathode materials are noted to be sufficient for installation in 500,000 entry-level electric vehicles (with 50-kilowatt capacity and 350-kilometer range per charge). Source