Moroccan-Chinese collaboration, COBCO, initiates production of electric vehicle battery components
**Morocco Establishes Itself as a Hub for EV Battery Production**
Morocco is making significant strides in electric vehicle (EV) battery production, positioning itself as a key player in the global EV battery supply chain. The North African country has recently inaugurated major facilities for EV battery component manufacturing, marking a significant step towards integrating its EV supply chain.
The latest development is the launch of the COBCO plant in Jorf Lasfar, a joint venture between Moroccan investment fund Al Mada and CNGR Advanced Materials. With an investment of $2 billion, the plant is expected to reach a maximum production capacity of about 70 gigawatts annually, sufficient to equip nearly one million electric vehicles each year.
The Moroccan government is also in talks with several battery manufacturers, including Chinese companies like BTR New Material Group, to establish more production facilities. This includes a planned gigafactory by Gotion High Tech, which is expected to start operations by Q3 2026 with an investment of up to $6.5 billion.
The strategic location of Morocco, its proximity to key markets, and its access to critical minerals like cobalt and phosphates, make it an attractive destination for EV battery production. Morocco aims to become one of the few countries with a fully integrated EV battery supply chain, targeting 70% local sourcing for battery production. This strategic positioning is part of a broader plan to become a regional hub for clean energy and e-mobility.
The global trend towards the increasing demand for electric vehicles and decreasing sales of gasoline and diesel vehicles, supports Morocco's aggressive push into EV production and sustainable mobility. In 2024, Morocco reported a 6.3% increase in automotive sector exports to a record 157 billion dirhams ($17 billion).
Other Chinese companies, such as Hailiang and Shinzoom, have announced plans to set up separate plants near Tangier, producing key EV battery ingredients like copper and anodes respectively. However, these plants are not yet operational. Chinese electric battery maker BTR New Material Group is planning to produce key component cathodes in Tangier.
COBCO's plant, which is already operational, will initially produce nickel-manganese-cobalt (NMC) and precursor cathodes (pCAM). Ultimately, the plant aims to reach an annual capacity equivalent to 70 gigawatt-hours. The plant will also start producing LFP cathodes. Production at Gotion High Tech's gigafactory is expected in the third quarter of 2026.
In conclusion, Morocco's efforts in EV battery production are part of a comprehensive strategy to transform into a major industrial hub for electric vehicles, leveraging its strategic location, mineral resources, and partnerships with international companies. The country's ambitious plans for EV battery production are aligned with global trends towards sustainable mobility and clean energy, positioning it as a key player in the global EV battery supply chain.
[1] Gotion High Tech to Build Africa's First Gigafactory in Morocco, Investment of $6.5 Billion, Yicai Global, 2022. [2] Gotion High-Tech to Build Africa's First Gigafactory in Morocco, Reuters, 2022. [3] Morocco Aims to Become a Hub for the EV Battery Supply Chain, North Africa Post, 2022. [4] COBCO Begins Production of Lithium-Ion Battery Components in Morocco, Jornal Económico, 2022.
- The partnership between Al Mada and CNGR Advanced Materials, as seen in the COBCO plant, is a testament to Morocco's ambition to integrate finance, technology, and data-and-cloud-computing in its energy sector, particularly in the electric vehicle battery production industry.
- The entry of Chinese companies like BTR New Material Group, Gotion High Tech, Hailiang, and Shinzoom into Morocco's business landscape signifies a growing interest in the North African country's potential as a global hub for energy, finance, and technology sectors, particularly in the EV battery supply chain.
- With the integration of key players in the energy, finance, and technology sectors, Morocco is poised to leverage its potential in data-and-cloud-computing for the optimization and expansion of its electric vehicle battery production industry, ultimately contributing to the growth of these sectors in the region.
