Morocco continues to establish itself as a central player in the global electric battery industry. The latest example is the strategic partnership between the Korean giant LG Energy Solution (LGES) and the Chinese group Yahua, now official with the launch of a lithium refining unit on Moroccan soil. A massive investment, an industrial establishment with high added value, and a promise: to make the Kingdom an essential pillar of the electric vehicle value chain.
A first phase of over 5.5 billion dirhams
The project, deemed strategic by the 8th National Investment Commission, represents an initial investment of over 5.5 billion dirhams. It plans to create more than 430 direct jobs in a cutting-edge industrial sector where technology and innovation dictate the rules of the game.
The unit will produce lithium hydroxide, a key component in the manufacturing of electric battery cathodes. This raw material, essential for the performance of battery cells, is particularly sought after for its compatibility with nickel, which enhances the power and range of electric vehicles.
A strategic hub for Africa and beyond
Received by Karim Zidane, the Minister Delegate in charge of Investment, the LGES-Yahua duo has clear ambitions: to make Morocco a regional production and export platform to European and North American markets, with which the Kingdom has free trade agreements.
Through this project, Morocco not only strengthens its attractiveness for industrial investment but also its position in the global race for critical materials. The country is at the heart of a strategic ecosystem that already includes automotive, aerospace, and now electric batteries.
A partnership already matured
The officialization of this establishment comes two years after a first agreement signed in April 2023 between LG Energy Solution, the world’s second-largest battery manufacturer, and Yahua Group, one of China’s leaders in lithium production. This timeframe reflects significant preparatory work and a structured long-term project.
For LGES, this Moroccan project is part of a global strategy for secure sourcing of critical minerals. The company has already concluded similar agreements with Vulcan Energy (Germany), Liontown Resources (Australia), and SQM (Chile), illustrating its commitment to diversify and strengthen its sourcing globally.
An industrial dynamic supported by the State
The Moroccan government, through the Ministry of Investment, supports this type of project with high strategic potential. By integrating the LGES-Yahua initiative into the national framework of strategic projects, the State confirms its intention to structure a true lithium and electric battery cluster around leading industrial players.
This positioning responds to a clear logic: to capture a growing share of the added value generated by the global energy transition. And Morocco, thanks to its infrastructure, trade agreements, and stability, is increasingly positioning itself as a preferred destination for future industries.