LG Chem Ltd., a South Korean chemical corporation, declared on Sunday that it has partnered with China’s Huayou Group to build four electric vehicle (EV) battery material factories in Morocco and Indonesia as the electrification of vehicles accelerates. On Friday, the two companies signed four separate initial agreements to construct a cathode plant for lithium iron phosphate (LFP) batteries and a lithium concentrate-processing facility in Morocco, as well as a nickel-processing plant and a precursor plant in Indonesia. LG Chem VP and CEO Shin Hak-cheol said in a statement that they will use the Moroccan cathode plant as the global hub of their cathode production to strengthen their presence in the growing LFP cathode market. The company plans to complete the vertical integration of raw materials and precursors to the cathodes required to manufacture LFP batteries, allowing them to lead the world’s battery materials market. The plants in Morocco are expected to begin production in 2025 and 2026, while the timeline for the Indonesian plants is yet to be determined. LG Chem will have a controlling stake in the investment projects, and the EV materials produced in Morocco qualify for U.S. tax credits under the Inflation Reduction Act (IRA).
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