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LG Energy Solution is seeking to source lithium hydroxide from Morocco to diversify its supply of an essential electric vehicle (EV) battery material.
The South Korean battery cell maker signed a memorandum of understanding with Yahua, a leading lithium compounds maker in China, to receive lithium hydroxide from the African country.
LG Energy aims to secure high-quality lithium hydroxide through Yahua's manufacturing technology.
Morocco has secured free trade agreements (FTAs) with the US and the EU.
LG also aims to respond more flexibly to the US and the EU, which are strengthening trade protectionism by creating the Inflation Reduction Act and the Critical Raw Materials Act, respectively.
Kim Dong-soo, head of LG Energy Solution's procurement center, said the cooperation will further strengthen their raw material supply chain in the US and the EU markets.
