South Korea’s LG considers EV battery factory in Morocco
South Korea’s LG Energy Solution (LGES) considers setting up a factory to make key electric battery component cathodes together with Chinese firms in Morocco, where numerous EV battery factories are under development.
Wonjoon Suh, head of LGES’ advanced automotive battery division, told Reuters the company is negotiating partnerships with Chinese LFP cathodes makers, who produce cheaper batteries where lithium iron phosphates are a key component.
Suh told Reuters the company was considering Morocco together with Finland and Indonesia as potential locations.
Cathodes make up about a third of the value of an EV battery. Car manufacturers have been pushing for cheaper batteries based on LFP cathodes instead of the nickel-based cathodes used by manufacturers like Tesla, whose batteries are reputed to have higher storage capacity but are more expensive.
The Chinese have been world leaders in LFP cathodes. Chinese manufacturers faced tariff barriers in Europe, pushing them to seek investments in the continent or to countries that have free trade agreements with the EU.
Last month, China’s Gotion High Tech signed a deal with Moroccan authorities to build a $1.3 billion gigafactory, which is planned for production in 2026 and will export 85% of its output.
The investment is the first of its kind in Africa and the Middle East and is conducive to Morocco’s push to be a leader in EV battery manufacturing.
In May, Chinese auto battery manufacturers Hailiang and Shinzoom announced two separate plans to produce copper and anodes respectively for a combined total nearing 1 billion dollars in Tanger Tech.
In April, BTR New Material Group signed a deal with the Moroccan government to set up a cathodes plant, critical to EV battery manufacturing.
In September last year, CNGR Advanced Materials partnered with Moroccan private investment fund Al Mada to build an electric vehicle battery plant in Jorf Lasfar worth 2 billion dollars.
Besides phosphates, Morocco is rich with cobalt, a critical requirement in EV battery manufacturing.
