Page 162 - CW E-Magazine (3-10-2023)

News from Abroad

COLLABORATION

LG Chem and China’s Huayou Group plan LFP

cathode plant in Morocco

South Korea’s LG Chem is join- phosphate rocks. The plant is slated LG Chem will also promote the
ing up with China’s Huayou Group for for mass production by 2026 with an lithium conversion plant business with
manufacturing lithium-phosphate-iron annual capacity of 50,000 metric tons Huayou Cobalt in Morocco. A conver-
(LFP) cathode materials. and is expected to meet the soaring sion plant is a facility that extracts lith-
demand for LFP cathode materials, ium hydroxides and lithium carbonates,
The two firms signed a comprehen- which is gaining popularity due to both of which are essential for produc-
sive memorandum of understanding their price competitiveness over nickel- ing cathode materials from lithium
(MoU), to jointly enter the LFP cathode cobalt-manganese (NCM) cathodes. concentrates. The lithium conversion plant
material market and strengthen their 50,000 tons of LFP cathode materials is expected to mass-produce 52,000
cathode supply chain. The parties will are enough to be installed in 500,000 tons of lithium annually by 2025 and
work together to build a total of four entry-class electric vehicles (that come supply that it to the LFP plant.
facilities, including an LFP cathode mate- with a 50-kilowatt-per-hour capacity
rial plant and a lithium conversion plant and a 350-kilometer range). In addition to the plants in Morocco,
in Morocco as well as a high-pressure LG Chem and Huayou Cobalt agreed
acid leaching (HPAL) plant and a LFP cathode materials produced at to cooperate in Indonesia, which is
precursor plant in Indonesia. the Morocco plant will be supplied to actively promoting the battery manufac-
the North American market and sub- turing and electric vehicle sector based
“We will actively respond to the sidised by the US Inflation Reduction on its cost competitiveness as it has the
emerging LFP cathode material market Act (IRA) as Morocco is a signatory to world’s largest nickel reserves and pro-
with the Morocco plant as our global the US Free Trade Agreement (FTA). duction. LG Chem and Huayou Cobalt
base,” said LG Chem CEO Mr. Shin LG Chem and Youshan are to adjust will work together for the vertical inte-
Hak-cheol. “Our goal is to create a its share in compliance with the regu- gration of the cathode materials supply
strong, vertically integrated material lations of the Foreign Entity of Concern chain, ranging from HPAL to precursor
supply chain – flowing from raw mate- (FEOC) regulations of the IRA. production, to meet the IRA standards.
rials to precursors and cathode mate-
rials – and solidify our status as the LG Chem will venture into the The companies are also considering
world’s top comprehensive battery LFP cathode materials business based the establishment of a precursor plant
materials producer.” on the Morocco plant and expand the in Indonesia with a production capa-
business into lithium-manganese-phos- city of 50,000 tons per year. They will
LG Chem and Huayou Group’s phate-iron (LMFP) cathode materials, also discuss the construction of a plant
subsidiary Youshan will build a LFP a mixture of manganese and LFP that to extract mixed hydroxide precipitate
cathode material plant in Morocco, provide more capacity and better output (MHP) from nickel ore for precursor
which sits on the world’s largest reserve of than LFP cathode materials. production.

SUPPLY DEAL
Sigma Lithium to supply over 20,000 tonnes of lithium

to Glencore

Canada-based global lithium pro- The company announced the ship- from its Vitoria port in Brazil. Under
ducer, Sigma Lithium, said it is sup- ping of 22,500 tonnes of battery-grade, the agreement, Sigma Lithium will
plying over 20,000 tonnes of lithium to carbon neutral, zero hazardous chemi- receive 50 percent prepayment in
Glencore, a Swiss multinational com- cals and zero tailings sustainable lithium advance of shipment at a provisional
modity trading and mining company. (‘Triple Zero Green Lithium’) to Glencore lithium pricing of 9 percent of the price of

162 Chemical Weekly October 3, 2023

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