Morocco’s Al Mada, China’s CNGR to partner in $2 bln EV battery plant

Morocco’s private investment fund Al Mada and China’s CNGR Advanced Materials said they will partner to build an electric vehicle battery plant in Jorf Lasfar worth 2 billion dollars.

The two parties announced in a joint statement that construction will start this year for the plant that is planned to be operational in 2025.

Local media said the plant would have a capacity to equip 1 million electric vehicles annually.

The firms are reportedly in talks with Morocco’s state-owned phosphates and fertilizer company OCP to secure the phosphates they need for production.

In August, Chinese electric vehicle battery manufacturer Huayou said it had plans to invest MAD 200bn ($20bn) into establishing a plant in Morocco’s region of Laayoune Sakia El Hamra. The plant will produce electric batteries for 6mn cars annually.

In May, China’s Gotion High-Tech signed an agreement to construct a $6.3bn new factory for the production of electric car batteries and energy storage systems in Morocco.

Moroccan authorities have encouraged EV battery manufacturers to invest in the country where the automotive sector has been topping industrial exports over the past 8 years.

The move is also key to adapt the growing automotive industry to low carbon requirements as the main export market the EU braces for a ban on cars operating on fossil fuel in the next decade.

Besides phosphates, Morocco is rich with lithium, another key mineral in EV battery manufacturing.