Chinese EV Battery Makers Turn to Morocco

On 29 March 2024, Chinese EV battery maker, Jiangsu BTR New Material Group, announced that it has been granted the approval from the Moroccan government to set up a battery cathode for Electric Vehicles (EV) in Tanger.

The project will require a total #FDI of USD 300 million and the plant will be built in two phases. The 1st phase will see the plant achieve a production capacity of 25,000 tonnes, while at the 2nd phase, the production capacity will ramp up to a total of 50,000 tonnes.

The first phase of the plant is expected to start production in September 2026. The factory is located in the Mohammed VI Tech City of Tanger which is a #hitech #SEZ offering an attractive package of incentives for investors.

Morocco possesses a number of unique selling points (#USP) which makes it a magnet for battery production. Firstly, it has large reserves of #CriticalMinerals that go into the production of the batteries, such as #Lithium and #Cobalt.

Secondly, it is very close to the lucrative European market which has already set a calendar to phase out gas and diesel vehicles. As a matter of fact, sales of gas-emitting vehicles will no longer be permitted starting from 2035.

Thirdly, the longstanding #FTA between Morocco and USA will greatly facilitate market access into the key North American car market. The FTA was signed back in 2004 and came into effect in 2005.

In line with the Continental Framework for the Accelerated Industrial Development of Africa (#AIDA), several mineral-rich member states of the African Union (#AU) have been calling for more Local Value Addition (#LVA). Only by upgrading to a higher level up the EV global value chain (#GVC), can Africa reap more benefits for its socio-economic development in order to achieve “The Africa We Want.”

“This investment in the sector of electric mobility is not an isolated case. It is only the first of a series of projects in the pipeline, which will eventually position the Kingdom of Morocco as a manufacturing hub for EV batteries and a key player in the production of critical components in a sector full of potential.”

Morocco Minister of Investment Mohcine Jazouli

It is no surprise that several EV battery makers are already considering investing in Morocco. Guangzhou Tinci Materials Technology, Hunan Zhongke Shinzoom Technology, Guizhou CNGR Advanced Material, Hefei Gotion High-Tech, as well as a JV between Zhejiang Huayou Cobalt and LG Chem, are just some of companies which are evaluating the business climate in Morocco before finalizing the investment decision.