Morocco, new battery hub for Europe

Morocco, new battery hub for Europe
Morocco, new battery hub for Europe

Volkswagen, giant of the automobile industry, recently highlighted Morocco’s strategic role in the development of its battery supply network for electric vehicles in Europe. This statement, coming from Sebastian Wolf, director of operations for the battery unit at Volkswagen, comes in a context where Chinese companies are showing increasing interest in establishing their factories on Moroccan soil.

Morocco is positioning itself as a key player in the supply chain of LFP (Lithium Iron Phosphate) batteries, essential for the electrification of automobile fleets. Wolf highlighted to Bloomberg the absence of an integrated supply chain in Europe for these batteries, while specifying that Morocco, and not Europe, is becoming a hub for this industry.

Several factors contribute to the attractiveness of Morocco for automobile and battery giants:

Regarding phosphate resources, Morocco has one of the world’s largest reserves of phosphate, a key component of LFP batteries., in addition to its geographical location which offers rapid access to European markets and advantageous trade agreements, facilitating export to Europe.

Read also: Competition: EU threatens to heavily tax Chinese electric vehicles

Chinese investments in Morocco

CNGR, a Chinese company, plans to build a large battery materials production plant in Jorf Lasfar, in partnership with a Moroccan investment fund. This ambitious project, scheduled to start in 2025, represents several billion dollars of investment and aims to supply the European market with battery materials.

Other Chinese companies such as BTR New Material Group and Gotion High-Tech also have plans to set up in Morocco. BTR plans to build a factory in Tangier Tech, while Gotion High-Tech plans the establishment of a Gigafactory in Kenitra.

Volkswagen’s commitment and the interest of Chinese companies in Morocco demonstrate the country’s transformation into a nerve center for the battery industry in Europe. With its competitive advantages and strategic position, Morocco is well on its way to playing a leading role in the future of electric mobility.

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