China continues its expansion in Africa and Morocco in particular, with massive investments in Moroccan factories, especially in the automotive and batteries sector. According to the new York Times, Chinese investments in the energy sectors, electric vehicles and batteries have exploded in recent years, reaching the colossal sum of $ 10 billion. This flow of investments has led many Chinese companies, especially in the automotive industry, to set up in Morocco, including the manufacturer of High-Tech Gition batteries.
In 2023, the Chinese manufacturer CNGR Advanced Material Co. signed a partnership with the private African investment fund Al Mada to build an industrial base in Morocco. Total investment exceeding $ 2 billion will allow you to start the production of battery materials in Jorf Lasfar, a strategic site on the country’s Atlantic coast, from 2025. In addition, in July 2024, eight other Chinese manufacturers announced their intention to set up new factories near Tangier, producing parts for electric vehicles.
These projects are part of a context of repercussions of inflation Reduction Act, an American law of $ 430 billion to combat climate change, which pushes China to develop its activities in partner areas like Morocco.
The reasons behind these Chinese investments are multiple. First of all, Morocco has an “automotive industrial ecosystem” which has developed in the past 20 years.
Morocco, with its strategic position at the gates of Europe and Africa, offers an ideal platform for companies seeking to extend their activities worldwide. The country benefits from a sophisticated transport network, with ports like Tangier-Méditerranée, and large phosphate reserves, crucial for the production of batteries. Morocco has also embarked on a rapid transition to renewable energies, making it a key player in the electric vehicle industry.
-Morocco also has a free trade agreement with the European Union, a major commercial advantage in the current context, where global trade faces high prices and geopolitical tensions. This status allows it to serve as a bridge between Europe and Africa, facilitating access to key markets for products manufactured on its soil.
Although Morocco considers China as a key partner, it is aware of the potential risks linked to this geopolitical dynamic.
It should be noted that Morocco has a free trade agreement with the United States since 2004, although the Trump administration has imposed customs duties of 10 % on Moroccan exports. However, Morocco has not yet suffered the severe economic sanctions applied to other shopping countries with China, such as Mexico, Vietnam or Thailand.
In this complex and changing context, China seems well decided to invest significantly in Morocco, especially in the automotive industry and green technologies, but these investments must be monitored in the light of global geopolitical and economic developments.
