LG Energy Solutions Expands Battery Supply Chain in Morocco with Yahua Partnership

LG Energy Solutions (KRX: 373220) has signed a Memorandum of Understanding (MOU) with Yahua, a leading Chinese manufacturer of lithium compounds, to develop a lithium hydroxide production facility in Morocco.

This strategic move aims to strengthen the company’s battery supply chain by leveraging Morocco’s status as a free trade agreement country with the United States and the European Union.

Lithium hydroxide, a key material for high-nickel, high-capacity electric vehicle batteries, offers higher energy density and a more extended range per charge.

As demand for electric vehicles increases, securing a stable lithium hydroxide supply chain is critical for battery manufacturers.

Yahua, a renowned Chinese lithium hydroxide manufacturer, is globally recognized for its product quality.

The partnership with LG Energy Solutions is expected to ensure a high-quality supply of lithium hydroxide by combining Yahua’s manufacturing expertise with LG Energy Solutions’ established raw material supply chain.

Jae-Hyun Lee, Head of the Procurement Center at LG Energy Solutions, said the collaboration would strengthen the raw material supply chain in the growing North American and EU markets and enhance customer value through increased supply stability and quality competitiveness.

The MOU with Yahua is part of LG Energy Solutions’ ongoing efforts to strengthen its core raw material supply chain.

The company has signed agreements with European lithium producer Vulcan Energy, Australian-based Liontown Resources, and Chilean lithium company SQM to secure stable lithium hydroxide and carbonate supplies.

This expansion positions LG Energy Solutions to better navigate changing business environments, such as the US Inflation Reduction Act and the EU Critical Raw Materials Act, rapidly.