Korea: LG Energy Solution (LGES), the electric vehicle (EV) battery manufacturer from South Korea, has entered into a preliminary agreement with Yahua Industrial Group, a Lithium producer from China, to manufacture battery-grade Lithium Hydroxide in Morocco.
A recent partnership aims to strengthen the supply chain for essential battery materials and fulfill sourcing necessities within the United States. However, no specifics regarding production or financials were disclosed.
The US government has recently passed the Inflation Reduction Act (IRA) which offers tax credits to electric vehicle buyers amounting up to $7,500. In order to be eligible for the tax credit, the EVs must be manufactured in North America and equipped with minerals that have been sourced from US mines or processing plants. Additionally, the credit is also applicable to vehicles that have been assembled in countries that have entered into free trade agreements (FTA) with the United States.
LGES is set to bolster its readiness for the forthcoming Critical Raw Materials Act - a proposed law governing minerals supply chains - that is being advocated by the European Union.