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| LGES |
Yahua and LGES advanced the Yahua LGES Morocco lithium refinery to secure battery-grade supply. The partners will invest $612mn in phase one. As a result, the Yahua LGES Morocco lithium refinery targets 90,000 t/yr of lithium salts at nameplate. The project underscores how the Yahua LGES Morocco lithium refinery can regionalize cathode supply chains.
Phase-one scope and capacity
The companies will build 30,000 t/yr in the first phase. Ultimately, the refinery will reach 90,000 t/yr of lithium salts. However, they did not disclose construction or launch dates. Yahua already agreed in 2023 to supply LG Chem 30,000t of lithium hydroxide over 2023–26. Therefore, the project complements existing offtake frameworks.
Why Morocco for lithium refining
Morocco offers FTA access to the US and strong industrial logistics. Meanwhile, abundant phosphate resources support LFP battery ecosystems. Chinese peers CNGR, BTR, and Huayou are also investing there. The country aims to produce 1mn vehicles in 2025, including 107,000 EVs. Consequently, local demand and export channels can anchor long-term utilization.
Morocco continues to attract upstream-to-midstream capital. As a result, LGES strengthens diversification beyond China while keeping cost discipline. The refinery also aligns with OEM sourcing strategies under evolving trade rules. Battery makers increasingly localize key steps to manage tariff and compliance risks.
The Metalnomist Commentary
The Morocco siting checks three boxes: FTA optionality, phosphate adjacency, and maturing auto clusters. Watch for feedstock strategy and conversion mix between carbonate and hydroxide. Clear timelines and ESG disclosures will determine bankability and pace.
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