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Rabat – South Korea’s LG Energy Solution (LGES) is considering Morocco as a new site for a production plant for Electric Vehicles (EV) batteries to export to Europe.
The news comes amid increasing competition and new tariffs affecting EV imports into Europe.
Wonjoon Suh, LGES’s head of advanced automotive battery division, revealed that Morocco is one of three locations under consideration for the production of lithium iron phosphate (LFP) cathodes.
“We are in talks with Chinese companies that will develop and produce LFP cathodes with us for Europe,” Suh told Reuters. “Morocco is a key candidate for this expansion due to its strategic location and growing industrial capabilities.”
The push to establish operations in Morocco aligns with LGES’s strategy to offer low-cost LFP batteries, which are in demand due to their affordability and safety.
This decision comes in response to the European Union’s decision in June to impose tariffs of up to 38% on electric vehicles imported from China.
The tariffs were introduced following an anti-subsidy investigation aimed at addressing market imbalances.
“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.”
Morocco’s favorable trade agreements with Europe and its growing reputation as an attractive destination for international investments make it a top candidate to host the plant.
Suh also mentioned that LGES is exploring various partnerships to make this expansion a reality. “We are considering various measures, including forming joint ventures and signing long-term supply agreements,” he said.
“Our goal is to reduce manufacturing costs to levels comparable to our Chinese rivals within the next three years,” he added.
Read Also: LG Energy Solution to Source Lithium From Morocco
