LG Energy Solution to source lithium from US FTA partner Morocco

LG Energy Solution's Ochang Energy Plant in Cheongju, North Chungcheong Province / Courtesy of LG Energy Solution

By Baek Byung-yeul

LG Energy Solution is diversifying its supply for a material that is essential for electric vehicle (EV) batteries. The battery cell maker is seeking to source lithium hydroxide from Morocco, which has secured free trade agreements (FTAs) with the United States and the European Union, according to the company, Wednesday.

LG said it signed a memorandum of understanding with Yahua, a leading lithium compounds maker in China, to receive lithium hydroxide from the African country.

Given Morocco is an FTA partner with the U.S. and the EU, LG expects that it will be able to strengthen its supply chain for lithium hydroxide, an essential material for cathodes.

The company also aims to respond more flexibly to the moves of the U.S. and the EU, which are trying to strengthen trade protectionism by creating the Inflation Reduction Act and the Critical Raw Materials Act, respectively.

Lithium hydroxide can be easily synthesized with nickel, a core material for cathodes, so it is used for high-capacity EV batteries that utilize high proportions of nickel. The higher the proportion of nickel in a battery cell, the higher the energy density, which means a longer driving distance.

The company aims to secure high-quality lithium hydroxide through Yahua's manufacturing technology.

“With this cooperation, we will be able to further strengthen the raw material supply chain in the U.S. and the EU markets,” said Kim Dong-soo, head of LG Energy Solution's procurement center.