Chinese majors in the intermediate sector are flocking to Morocco. With more than $700 million in investments announced by Chinese companies, the Kingdom is becoming a new global cathode hub.
Morocco is poised to become a key producer of cathodes thanks to investments announced by Chinese companies in the country for more than $700 million, according to Benchmark Intelligence. Chinese majors in the intermediate sector are flocking to this new cathode pole that is the Kingdom, notes the information agency based in London and specializing in the supply chain of lithium-ion batteries for electric vehicles.
The total capacity announced in Morocco already represents around a quarter of Europe’s total planned capacity. And this was after the Chinese company BTR announced an investment of $490 million in a new gigafactory, in December 2023.
The new factory, located in Tanger Tech, will be able to produce 50,000 tonnes of cathodes for lithium-ion batteries per year. BTR, the agency calls it, is a subsidiary of China Bao’an Group and a trusted supplier for Tesla.
Almost all of Morocco’s cathode capacity was added last year when a wave of Chinese investment from companies like Huayou Cobalt, CNGR, and Tinci was announced.
One of the main factors attracting foreign investment is Morocco’s free trade ties with the United States and Europe, making it an ideal operating base for Chinese companies seeking to enter these markets.
In addition, Morocco’s natural resources have also been a major factor in attracting foreign investment, including its reserves of phosphate, a mineral used to make lithium iron phosphate (LFP) cathodes.
Morocco’s phosphate reserves amount to 50 billion tonnes, or 71% of the world total, notes Benchmark Mineral Intelligence.
