CNGR, Al Mada Partner For $2 Billion EV Battery Plant in Morocco

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Chinese battery components manufacturer CNGR Advanced Material and the African private investment firm Al Mada have unveiled plans to establish an industrial hub in Jorf Lasfar, Morocco. This project will entail an investment of $2 billion. This collaborative endeavor was officially disclosed through a joint statement by the two firms.

The two entities are currently engaged in negotiations with Morocco’s state-owned phosphates and fertilizer enterprise, OCP, to secure the essential phosphates required for their production processes.

Commencement of production is slated for 2025, with an annual capacity projected to outfit over 1 million electric vehicles (EVs). The production is predominantly earmarked for export.

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Morocco boasts abundant phosphate resources, a vital ingredient in the fabrication of lithium ferrophosphate (LFP) cells indispensable for EVs. The venture intends to develop precursor materials for nickel-cobalt-manganese (NCM) batteries, alongside manufacturing units for LFP cathodes and recycling facilities dedicated to battery materials.

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In a related development, Chinese electric vehicle battery manufacturer Huayou announced in August its ambitious investment of about $20 billion to construct a facility in Morocco’s Laayoune Sakia El Hamra region. The company wants to manufacture batteries for 6 million vehicles annually.

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Furthermore, in May 2023, the Chinese electric mobility player Gotion High-Tech inked an agreement for the establishment of a $6.3 billion factory to produce electric vehicle batteries and energy storage systems in Morocco.

These strategic initiatives reflect Morocco’s concerted efforts to lure EV battery manufacturers, aligning with the country’s burgeoning automotive sector’s low-carbon imperatives. This year, automobile exports, including components, have eclipsed phosphate and fertilizer sales, indicating the sector’s growing significance.