LG Chem has announced that it will build a lithium-phosphate-iron (LFP) cathode materials plant in Morocco in partnership with China’s Huayou Group. In addition, LG Chem will start 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 material market and strengthen their cathode supply chain.
The parties will work together to build a total of four facilities, including an LFP cathode material plant and a lithium conversion plant in Morocco as well as a high-pressure acid leaching (HPAL) plant and a precursor plant in Indonesia.
“We will actively respond to the emerging LFP cathode material market with the Morocco plant as our global base,” commented LG Chem CEO Shin Hak-cheol. “Our goal is to create a strong, vertically integrated material supply chain — flowing from raw materials to precursors and cathode materials — and solidify our status as the world’s top comprehensive battery materials producer.”
LG Chem and Huayou Group’s subsidiary Youshan will construct a LFP cathode material plant in Morocco, which sits on the world’s largest reserve of phosphate rocks.
The plant is slated for mass production by 2026 with an annual capacity of 50,000 metric tons and is expected to meet the soaring demand for LFP cathode materials, which is gaining popularity due to their price competitiveness over nickel-cobalt-manganese (NCM) cathodes.
50,000 tons of LFP cathode materials are enough to be installed in 500,000 entry-class electric vehicles (that come with a 50-kilowatt-per-hour capacity and a 350-kilometer range).
