Morocco continues to establish itself as a central player in the global electric battery industry. The latest example is the strategic partnership between the South Korean giant LG Energy Solution (LGES) and the Chinese group Yahua, now formalized with the launch of a lithium refining unit on Moroccan soil. This massive investment marks a high-value industrial establishment and promises to make the Kingdom an indispensable pillar of the electric vehicle value chain.
A First Phase Exceeding 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 is expected to create more than 430 direct jobs in a cutting-edge industrial sector where technology and innovation set the rules.
The unit will produce lithium hydroxide, a key component in the manufacturing of electric battery cathodes. This raw material, essential for battery cell performance, 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
Welcomed by Karim Zidane, the Minister Delegate for Investment, the LGES-Yahua duo has clear ambitions: to make Morocco a regional platform for production and export 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 the automotive and aerospace industries, and now electric batteries.
A Partnership Already Matured
The formalization of this establishment comes two years after an initial agreement signed in April 2023 between LG Energy Solution, the world’s second-largest battery manufacturer, and Yahua Group, one of China’s leading lithium producers. This timeline reflects significant preparatory work and a long-term structured project.
For LGES, this Moroccan project fits into a broader strategy for secure sourcing of critical minerals. The company has already reached similar agreements with Vulcan Energy (Germany), Liontown Resources (Australia), and SQM (Chile), illustrating its commitment to diversify and strengthen its supply sources globally.
An Industrial Dynamic Supported by the State
The Moroccan government, through the Ministry of Investment, supports this type of high-potential strategic project. By integrating the LGES-Yahua initiative into the national framework for strategic projects, the state confirms its desire to structure a true lithium and electric battery cluster around key industrial players.
This positioning adheres to a clear logic: to capture an increasing share of the added value generated by the global energy transition. Thanks to its infrastructure, trade agreements, and stability, Morocco is increasingly positioning itself as a preferred destination for the industries of the future.