South Korea-based battery company LG Energy Solution seeks to source lithium hydroxide from Morocco.
The company signed a memorandum of understanding with Yahua, a Chinese lithium compounds maker, to receive the material from Morocco.
“Based on this cooperation, we will be able to further strengthen the raw material supply chain in the North American and EU markets, where high growth is expected in the future,” said Kim Dong-Soo, head of LG Energy Solution Purchasing Center.
The LG Energy Solution official further stressed that the company’s ambition is to increase its customer value by securing differentiated raw material supply stability.
Lithium hydroxide is a key material for electric vehicle batteries, offering higher energy density, according to Pickool.
The news outlet also stressed the company’s determination to continue to expand its position and its battery supply chain.
Demand for electric vehicles has been increasing in the past couple years.
According to the US Bureau of Labor Statistics, the electric vehicles market has grown rapidly in recent years, with the report expecting the market to further grow at a fast pace over the coming decade.
In the US, electric cars sales increased from 0.2 % in 2011 to 4.6% in 2021.
Morocco is also among the countries that seek to boost its electric cars production in the coming years.
In November of last year, the government expressed satisfaction with the high demand for electric cars in the Moroccan market.
Meanwhile, several companies are racing to increase production of electric cars in Morocco.
Multinational group Stelantis has recently announced that it will devote a third of its production capacity to electric cars. The company has notably pledged to invest over €300 million in its Kenitra manufacturing facility to double local production capacity to 400,000 vehicles, with the plan being to reach more than 22% market share in the MENA region by 2030.
Reiterating determination to capitalize on the sector, Morocco’s Minister of Trade stressed that the North African country aims to double its production of electric cars in the coming two years.
Morocco’s electric car production is set to reach 100,000 units annually in two to three years from now.
The country is also mobilizing infrastructure to help speed up the growth of the electric market, with the country announcing its ambition to open 2,500 charging stations for electric vehicles by 2026.
Source : Moroccoworldnews