Morocco invests more than 700 million in the production of cathodes
Morocco is set to strengthen its position as a global cathode producer with a wave of investments from Chinese companies that will exceed $700 million, according to Benchmark Minerals Intelligence.
The report says the investment will bring Morocco's planned production capacity to about a quarter of the projected demand from Europe, including a massive $490 million investment in the BTR (supplier to tech giant Tesla, operates as a subsidiary of Chinese group Bao'an) China factory announced in December 2023.
The new factory will be in the Tangier Technopark, in Tangier province. The complex will have a production capacity of up to 50,000 tons of lithium-ion battery anode material per year.
The Chinese investment
In December 2023, the North African country recently signed a memorandum of understanding (MoU) with the Chinese-European electric mobility giant Guchen Hi-Tech, with an estimated investment of 6,400 million dollars. Recent investments include a significant $490 million investment by China BTR in the facility.
The report details that foreign investors are attracted to Morocco for several reasons, including free trade relations with the United States and Europe. In Rabat they want to continue in this direction of stability and development. In fact, Morocco's Minister of Industry and Trade, Ryad Mezzour, announced last summer that the North African country's electric vehicle production capacity will reach 100,000 units annually in two to three years, doubling the current production.
Guchen High-Tech, like other international companies, realized the enormous potential of Morocco in this field and decided to invest in the Kingdom before in other countries. Based on the North African country's agreements with Europe, the Chinese company is expected to build a second assembly plant in Europe.
The first assembly plant was built in Germany. The Chinese electric battery giant employs about 20,000 people worldwide, including in Asia, Europe, and North America. Guchen High Tech's sales in 2024 are expected to increase by 122.59% over the previous year to reach $3.2 billion.
China's Sentury Tire doubles its Morocco project
Sentury announced the expansion of the project in Morocco last October and received unanimous support for its implementation at an extraordinary meeting. Like the As Pontes plant, the Tangier plant is part of the roadmap developed by the company to reach eight production centers for high-performance tires: three in China, two in Thailand, two in Europe and two in Africa and one is in North America.
This investment not only demonstrates Sentury Tire's confidence in Morocco's potential as a manufacturing and export platform, but also strengthens Morocco's position on the global map of the tire industry. The North African country is becoming an important investment destination in several sectors and the arrival of Sentury Tire is helping to reinforce this trend. Morocco offers a business-friendly environment with a growing economy, a strategic location, and a young and skilled workforce.
In addition, Morocco has important natural resources, especially phosphate reserves, which are important for the cathode industry. Phosphates, a critical component in lithium iron phosphate (LFP) cathodes production, play a key role in the evolution of industrial environments. The country has phosphate reserves of up to 50,000 million tons, which is equivalent to at least 71% of the world total.
