CNGR Morocco Allows Chinese Batteries to Get Around Tariffs

CNGR Morocco is a Joint venture between Chinese company CNGR and African investment fund Al Mada. Al Mada holds the majority share of 50.03 while CNGR holds the rest.

The CNGR Morocco plant is called Cobco and is strategically situated near the Jorf Lasdar seaport to facilitate import of materials and export of finished goods. It just started production of nickel-based prescursor cathode active materials (PCAM) late this January.

The PCAM plant is part of a USD 3 billion plan which comprises a lithium-iron phosphate (LFP) battery factory and a battery recycling plant. Morocco enjoys preferential access to the EU and USA market via #FTA with these two key markets. In addition, Moroccco has rich deposits of phosphate, manganese and cobalt, which are #CriticalMinerals that go into the production of batteries.

The plant is located 100 km south of Casablanca on Morocco’s Atlantic coast. It is conveniently located near the OCP Group, which is a major supplier of phosphate which is necessary for the LFP plant.

With the impending new tariff hike on Chinese goods, China view Morocco as a new industrial base which will allow its producers to mitigate the impact of tariff barriers.

When fully operational, the industrial base will attain an annual production capacity of 70 GWh of batteries, enough to power more than one million EV.