- 13:00Historic Maritime Discovery: 19th-Century Shipwrecks Found Off Morocco's Coast
- 12:22Morocco's Atlas Mountains to Host Groundbreaking Dinosaur Theme Park
- 11:50Moroccan Mining Firm Seals USD 30 Million Oumejrane Mine Deal
- 11:41Tesla Introduces Revamped Model Y in China to Counter Growing Competition
- 11:20Major Aerospace Firm Embraces Solar Power Across Moroccan Operations
- 11:03Poland Ensures Netanyahu's Participation at Auschwitz Commemoration Amid ICC Warrant
- 10:50Morocco Sets New Benchmark for Information Access Reform in Arab Region
- 10:33Hyundai Introduces Affordable Electric Vehicle to Tap Japan’s Hesitant EV Market
- 10:20Morocco Showcases Tech Innovation at CES 2025, Strengthens US Economic Ties
Follow us on Facebook
China and Morocco Deepen Electric Vehicle Battery Partnership
Chinese companies are increasingly investing in Morocco's burgeoning electric vehicle (EV) industry, drawn by the country's strategic location and opportunities tied to U.S. subsidies. A recent article by the South China Morning Post highlighted the growing collaboration, marking a pivotal moment in the economic relationship between the two nations.
During a brief meeting on the sidelines of his return from the G20 summit in Brazil, Chinese President Xi Jinping emphasized the deepening ties between China and Morocco. His discussion with Crown Prince Moulay Hassan underscored Morocco’s significance in China's global EV strategy.
Major Chinese Investments in Morocco
Chinese firms have committed billions to Morocco’s EV sector, including:
Gotion High-Tech: A $1.3 billion investment to establish Africa’s first EV battery “gigafactory” near Rabat. BTR New Material Group and Shinzoom: Additional investments of $300 million and $690 million, respectively, in battery components. CNGR: Partnering with Morocco’s royal investment group Al Mada in a $2 billion joint venture.
This influx of investments highlights Morocco’s appeal, which includes access to European markets, reserves of key materials like lithium and phosphate, and significant green energy capabilities. Economists and analysts, including David Shinn of George Washington University and François Conradie of Oxford Economics Africa, view Morocco as a strategic hub for the global EV supply chain.
Geopolitical and Economic Context
China's engagement with Morocco is part of its broader efforts to expand influence in North Africa, alongside investments in Tunisia, Libya, Egypt, and Algeria. However, regional dynamics, such as the rivalry between Morocco and Algeria over Western Sahara, pose challenges.
Moreover, Morocco's alignment with U.S. trade agreements positions it as a beneficiary of the Inflation Reduction Act. This $430 billion U.S. initiative offers EV tax credits but imposes sourcing requirements aimed at reducing dependence on China. Consequently, at least eight Chinese battery firms have announced plans to invest in Morocco, forming joint ventures to comply with these regulations.
A Thriving Automotive Sector
Morocco's automotive exports, valued at nearly $14 billion annually, are supported by a robust ecosystem of over 250 manufacturers. The growing EV segment is further bolstered by partnerships such as LG Chem’s collaboration with Huayou Cobalt and Gotion High-Tech’s $6.4 billion EV battery plant.
Despite the boom, Morocco's Industry and Trade Minister Ryad Mezzour has raised concerns about rising protectionist policies that could hinder future investments. Meanwhile, U.S. critics warn of potential exploitation of American subsidies by Chinese firms operating in Morocco.
A Strategic Partnership for the Future
China's intensified focus on Morocco demonstrates the North African nation’s pivotal role in reshaping the global EV supply chain. By leveraging its geographic and economic advantages, Morocco enables Chinese companies to secure leadership in battery manufacturing while navigating complex international trade landscapes.
This deepening partnership not only advances Morocco's ambitions as an automotive hub but also cements its status as a key player in the transition to sustainable energy solutions.
Comments (0)