Rabat – Morocco is poised to solidify its position as a global cathode producer, with a wave of investments exceeding $700 million by Chinese companies, reports Benchmark Minerals Intelligence.
The investments place Morocco’s anticipated production capacity at approximately a quarter of Europe’s projected needs, the report said, noting that projects include a staggering $490 million investment by China’s BTR in a facility announced in December 2023.
Located in Tangier Technopark City within Tangier Province, the new plant is set to produce a staggering 50,000 tons of cathode for lithium-ion batteries annually. BTR, a supplier for tech giant Tesla, operates as a subsidiary under China Bao’an Group.
The surge in Morocco’s cathode production capacity is thanks to the rise in investments in 2023, driven by a significant influx of Chinese investments from companies like Huayou Cobalt, CNGR, and Tinci.
In December 2023, the North African country recently signed a protocol of agreement with Guchen Hi-Tech, a Sino-European conglomerate in electric mobility, with investments estimated at a substantial MAD 65 billion dirhams ( $6.4 billion).
The report explains that foreign investors are drawn to Morocco for reasons, including the nation’s free trade connections with the United States and Europe.
The country’s location and its trade deals with the EU and US make it an ideal destination for Chinese investors looking to tap the two markets.
In addition, Morocco holds vast reserves of natural resources critical to the cathode industry, particularly its vast phosphate reserves. Phosphate, a crucial component in manufacturing lithium iron phosphate (LFP) cathodes, plays a pivotal role in this emerging industrial landscape.
The country currently holds phosphate reserves of up to 50 billion tons, accounting for a staggering 71% of the global total.
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