Chinese battery manufacturers Hailiang and Shinzoom are set to establish separate plants in Morocco, as the country aims to adapt its growing automotive sector to meet the increasing demand for electric vehicles (EVs), Moroccan officials announced on Tuesday.
According to authorities overseeing the development of the Moroccan northern industrial zone, Tanger Tech, Hailiang plans to invest $450 million in building a copper plant spanning 30 hectares, while Shinzoom, a part of Hunan Zhongke, will invest $460 million in an anodes plant covering 20 hectares.
In April, the Moroccan government approved plans for Chinese EV battery maker BTR New Material Group to construct a factory near Tangier to produce cathodes, a key component in batteries. Additionally, CNGR Advanced Material is expected to build a cathode plant in Jorf Lasfar, 100 kilometers south of Casablanca, with the government allocating 283 hectares for electric battery industries.
Last year, Morocco and China’s Gotion agreed to explore the establishment of an EV battery plant in the kingdom, with a potential investment of up to $6.3 billion. Industry minister Ryad Mezzour recently informed Reuters that discussions regarding the Gotion project’s footprint and location are progressing.
Chinese companies are attracted to Morocco’s strategic geographic location on the Strait of Gibraltar, its free trade agreements with key European Union and United States markets, and its existing automotive industry cluster.
In 2023, the automotive sector led Morocco’s industrial exports, reaching $14 billion, a 27% increase. The country is home to production plants operated by Stellantis and Renault, with a combined annual production capacity of 700,000 cars, as well as a network of local suppliers.
