Rabat – Morocco has emerged as a significant player in the global battery production market, particularly for Europe, which is struggling to establish a domestic supply chain for its electric vehicles.
This development comes as China has announced plans to set up factories in Morocco, according to Sebastian Wolf, head of operations for Volkswagen’s battery unit.
Wolf highlighted the lack of an integrated supply chain for batteries in Europe, adding “For now, let’s be honest, the establishment of the LFP battery supply chain is happening in Morocco and not in Europe.”
This observation highlights the significant gap in battery technology between Europe and China, which has been fueled by government incentives offered by the United States and Canada.
Morocco, however, offers several advantages that make it an attractive location for battery production.
The country has abundant phosphate resources, essential for LFP batteries, and is strategically located near Europe, making it ideal for supplying the European market.
Additionally, it has favorable trade agreements in place, enhancing its appeal to international companies.
Within the same context, a Chinese battery component manufacturer, CNGR, has partnered with a Moroccan investment fund to build a large production facility in Jorf Lasfar.
The project, valued at several billion dollars, aims to start producing battery materials by 2025 to address the supply chain deficit for the electric vehicle industry in Europe.
Several other Chinese companies, including BTR New Material Group in Tanger Tech and Gotion High-Tech, which plans to construct a “Gigafactory” in Kénitra, are also investing in Morocco’s lithium-ion battery sector.
The article originally appeared on Morocco World News.
