LG Energy Solution (LGES), the world’s second-largest manufacturer of electric vehicle batteries, is considering establishing a factory in Morocco. This plant would produce low-cost lithium iron phosphate (LFP) batteries for the European market in partnership with Chinese suppliers. The information was disclosed by Wonjoon Suh, head of the advanced automotive battery division, in a statement to Reuters.
LGES aims to expand its market share in Europe, particularly in the affordable electric vehicle segment, which accounts for nearly 50% of EV sales in Europe. This decision follows the imposition of additional tariffs on imports of Chinese electric vehicles into the EU.
This announcement aligns with LGES’s strategy to strengthen its supply chain for key battery materials. In April 2023, LGES announced a joint venture with Yahua Industrial Group to open a lithium hydroxide production plant in Morocco, targeting the American market.
