A major industrial milestone has just been reached in Morocco as LG Energy Solution and China’s Yahua Group officially greenlight a lithium hydroxide refining plant in the country. Two years after announcing their partnership, the two companies have now committed to building the facility, with the first phase valued at over 5.5 billion dirhams. The project has been granted the status of a “strategic investment” by Morocco’s National Investment Commission during its eighth session—signaling strong government support and streamlined regulatory procedures.
On Wednesday, Investment Delegate Minister Karim Zidane welcomed executives from both companies to formally mark this turning point. The facility is expected to generate over 430 high-skilled jobs, reflecting Morocco’s larger ambition to establish itself as a key hub in the electric vehicle battery supply chain. This industrial move also supports the country’s broader strategy of fostering a lithium-focused ecosystem that stretches from raw material processing to advanced battery production.
LG Energy Solution, South Korea’s top battery manufacturer and the world’s second-largest in the sector, has been aggressively expanding its global footprint to secure long-term access to critical raw materials. Alongside recent deals in Germany, Australia, and Chile, this Moroccan venture further diversifies its supply chain—a crucial move as the U.S. and EU, two rapidly growing markets with which Morocco has free trade agreements, tighten regulations around material traceability and security.
Lithium hydroxide plays a critical role in the production of cathodes, the heart of lithium-ion batteries. When combined with nickel, it significantly enhances both the energy density and range of electric vehicle batteries—key factors as the industry races toward more efficient, longer-lasting mobility solutions.
