LG Energy Solution considers Morocco for new battery production plant

LG Energy Solution Ltd., a battery company based in Seoul, South Korea, is considering Morocco as a site for constructing a battery production plant. «Morocco is a key candidate for this expansion due to its strategic location and growing industrial capabilities», said Wonjoon Suh, head of LGES’s advanced automotive battery division.

In an interview with Reuters earlier in July, Suh mentioned that in addition to Morocco, LGES is also considering Finland and Indonesia as potential locations for the new plant. If established in Morocco, the battery production facility would help build a supply chain for the EU electric vehicle (EV) market.

The interest in countries like Morocco for battery production comes as Europe's EV market faces tighter regulations. The European Commission (EC) has begun implementing additional tariffs of up to 38% on Chinese-made EV imports, following the United States, which imposed 100% tariffs on Chinese EVs earlier this year.

«The EU’s new tariffs have created significant pressure for us and other battery manufacturers to find cost-effective solutions», Suh explained. «By setting up a facility in Morocco, we can better manage production costs and remain competitive in the European market».

«Our goal is to reduce manufacturing costs to levels comparable to our Chinese rivals within the next three years», Suh added.

Notably, Morocco is emerging as a battery hub for Europe, which currently lacks a domestic battery supply chain for its electric car industry.

Morocco offers several advantages: rich phosphate resources, a key component of LFP batteries, proximity to Europe, and favorable trade agreements.

A Chinese battery component maker, CNGR, has partnered with a Moroccan investment fund to build a major production facility in Jorf Lasfar. This multi-billion dollar project aims to start producing battery materials in 2025, potentially filling the supply chain gap for Europe's electric car industry.

Several other Chinese firms are also entering the Moroccan lithium-ion battery sector, including BTR New Material Group, which plans a factory in Tanger Tech, and Gotion High-Tech, which plans to build a «Gigafactory» for electric vehicle batteries in Kenitra.