LG Chem of South Korea is teaming up with Huayou Group of China to produce lithium-phosphate-iron (LFP) cathode materials, said Chemweekly.
The companies have inked a memorandum of understanding (MOU) that will establish an LFP cathode material plant and a lithium conversion plant in Morocco as well as a high-pressure acid leaching (HPAL) plant and a precursor plant in Indonesia.
LG Chem and Youshan will construct an LFP cathode material plant in Morocco. The plant is scheduled for mass production by 2026 with a capacity of 50,000 tonnes/y. The LFP cathode materials made in Morocco will be supplied to the North American market and subsidized by the US Inflation Reduction Act (IRA) as Morocco is a signatory to the US Free Trade Agreement (FTA). LG Chem will also enter into the LFP cathode materials business on the Morocco plant and boost the business into lithium-manganese-phosphate-iron (LMFP) cathode materials.
The company will also promote the lithium conversion plant business with Huayou Cobalt in Morocco. The conversion plant is anticipated to make 52,000 tonnes/y of lithium by 2025, which will be supplied to the LFP plant. The two companies will also collaborate in Indonesia, ranging from vertical integration of the cathode materials supply chain, from HPAL to precursor production, to meet the IRA standards. The companies are also planning of making a precursor plant in Indonesia with a capacity of 50,000 tonnes/y. It will also discuss the building of a plant to extract mixed hydroxide precipitate (MHP) from nickel ore for precursor production. Youshan is a subsidiary of Huayou Group.
We remind, LG Chem and China-based Huayou Group has decided to enter the lithium-phosphate-iron (LFP) cathode material market together and construct four units. The facilities involve a lithium conversion plant and a LFP cathode material unit in Morocco, as well as a high-pressure acid leaching (HPAL) plant and a precursor unit in Indonesia. LG Chem and Huayou Group's Youshan will establish a 50,000-tonne/y LFP cathode unit in Morocco with the goal of mass production by 2026.
mrchub.com