Morocco at the heart of Chinese strategy for Europe

Morocco at the heart of Chinese strategy for Europe
Morocco at the heart of Chinese strategy for Europe

China is building a battery supply chain for Europe in Morocco, as the continent struggles to develop its own industry to fuel electric car manufacturing, Sebastian Wolf, chief operating officer at PowerCo, revealed. the battery unit of Volkswagen AG. “We have no supply chain. This must be put in place,” he added, noting that currently the establishment of the LFP supply chain is being done in Morocco rather than in Europe. A bridge between Africa and the old continent, the kingdom is rich in phosphate resources, essential for the manufacture of LFP cells, and benefits from fluid trade with the United States.

To read: Electric vehicles: Morocco, leader in Africa… and in Europe?

China holds significant control over global battery production and key raw materials like lithium, nickel and cobalt. In search of independence in this sector, Europe, which is lagging behind, is losing investments to the United States and Canada, where financial support policies are more attractive.

Read: Aeronautical infrastructure: Morocco is taking off and Europe is benefiting

Lithium Iron Phosphate (LFP) batteries have emerged as the technology of choice in recent years due to their reduced cost and increased efficiency. China can produce LFP batteries at almost half the global average cost, strengthening its dominant position in this market, says Bloomberg.

Read: Electric batteries: Morocco on the verge of becoming a world power

In 2023, CNGR Advanced Material Co., a Chinese manufacturer of battery components, partnered with private African investment fund Al Mada to build an industrial base in Morocco. With a total investment exceeding $2 billion, they plan to begin production of battery materials at a new site in Jorf Lasfar, on Morocco’s Atlantic coast, by 2025, it said.

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