China’s battery industry sparks Moroccan investment
Chinese auto battery manufacturers Hailiang and Shinzoom are gearing up to establish two separate plants in Morocco, aligning with the country’s burgeoning automotive sector’s shift towards electric vehicles, according to Reuters citing Moroccan officials.
According to authorities overseeing the development of the Tanger Tech industrial zone, Hailiang intends to construct a $450 million copper plant covering 30 hectares of land. Meanwhile, Shinzoom, a subsidiary of Hunan Zhongke, is poised to invest $460 million in an anodes plant spanning 20 hectares.
In April, the Moroccan government granted approval for BTR New Material Group, a Chinese electric battery maker, to erect a factory near Tangier dedicated to producing essential cathode components. Additionally, CNGR Advanced Material is anticipated to establish a cathode plant in Jorf Lasfar, situated 100 kilometres south of Casablanca, where the government has earmarked 283 hectares for electric battery industries.
Last year, Morocco and China’s Gotion initiated discussions regarding the establishment of an electric vehicle battery plant within the kingdom, with a potential investment totaling up to $6.3 billion.
Industry Minister Ryad Mezzour revealed to Reuters last month that progress is underway on the Gotion project, with ongoing deliberations concerning its scope and location.
Chinese enterprises are enticed by Morocco’s strategic geographical position on the Strait of Gibraltar, its advantageous free trade agreements with key markets in the EU and the US, and its existing automotive industry hub.
The maritime shipping sector faces mounting pressure to reduce its carbon footprint, particularly as the International Maritime Organisation (IMO) faces calls to implement a levy on greenhouse gas emissions from the sector, possibly as early as September 2024, with the ultimate aim of achieving net zero emissions by 2050.
Morocco’s industrial exports witnessed a significant boost in 2023, with the automotive sector leading the way at $14 billion, marking a 27 per cent increase.
Notably, the country hosts production facilities operated by Stellantis and Renault with a combined annual production capacity of 700,000 vehicles, alongside a network of local suppliers.
