LG Energy Solution (LGES) is evaluating the possibility of establishing a battery production plant in Morocco to serve the European market. The South Korean battery supplier aims to leverage Morocco’s strategic location and industrial capabilities to export batteries to Europe.
âMorocco is a key candidate for this expansion due to its strategic location and growing industrial capabilities,â said Wonjoon Suh, head of LGESâ advanced automotive battery division. Suh revealed that LGES is considering three locations for the new battery plant, with Finland and Indonesia also in the running.
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The proposed plant is part of LGES’s strategy to build a robust supply chain for the European Union (EU) electric vehicle (EV) market, which is experiencing significant changes. The European Commission (EC) has introduced tariffs of up to 38% on China-made EV imports, following a similar move by the United States earlier this year.
âThe EUâs new tariffs have created significant pressure for us and other battery manufacturers to find cost-effective solutions,â Suh explained. âBy setting up a facility in Morocco, we can better manage production costs and remain competitive in the European market.â
European automakers are under pressure to compete with China’s affordable electric vehicles. Despite the Commission’s additional tariffs, which will be added to the EUâs existing 10% rate, Chinese EV prices remain low.
âOur goal is to reduce manufacturing costs to levels comparable to our Chinese rivals within the next three years,â noted Suh.
LGES’s consideration of Morocco for its new battery plant underscores the company’s efforts to adapt to the evolving dynamics of the global EV market and maintain its competitive edge.
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