As the global new energy industry accelerates its presence in Africa, a remarkable industrial phenomenon is quietly taking shape in Morocco: Chinese lithium battery industry chain companies are replicating a complete battery production chain in the country through “chain-style” investment, providing a new growth engine for the new energy sector in Africa and beyond.
01 Core Projects of the Industry Chain Fully Underway
Gotion High-Tech: Africa’s First Battery Gigafactory
Chinese battery manufacturer Gotion High-Tech is investing approximately $6.8 billion in Kenitra, Morocco, to build Africa’s first electric vehicle battery gigafactory. The project is planned in five phases to achieve a total capacity of 100 GWh, with the first phase of 20 GWh expected to commence production in 2026. As a representative enterprise of Chinese battery technology, Gotion masters multiple battery chemical technologies including LFP, MFP, and NMC, and plans to achieve full-chain production from anode and cathode materials to battery assembly in Morocco. This project not only strengthens Morocco’s automotive supply chain but also positions the country as a strategic gateway for Chinese companies entering the European market.
BTR: Dual Layout for Anode and Cathode Materials
BTR New Material Group is investing approximately $849 million in the Tangier Tech City to build factories with an annual production capacity of 50,000 tons of cathode materials and 36,000 tons of anode materials, sufficient to supply about 500,000 electric vehicles. As a global leader in lithium battery materials, BTR dominates the global silicon-based and graphite anode material markets with shares of 70% and 40%, respectively. In April 2024, BTR’s project for an annual production of 50,000 tons of lithium battery cathode materials officially broke ground in Morocco, while its anode material project also fully commenced, forming a strategic dual-line global expansion for both anode and cathode materials.
Yahua Group and LG Collaboration: Key Lithium Refining Link
Sichuan Yahua Industrial Group, in collaboration with LG Energy Solution, plans to invest over $500 million to build a lithium hydroxide refinery to meet battery production demands. This joint project was officially designated as a “strategic project” by the Moroccan government on July 23, 2025, with an initial investment of $550 million expected to create over 430 direct jobs. The project will ensure high-value-added utilization of local lithium resources in Morocco, providing critical raw material support for the battery industry chain.
CNGR: Closed-Loop System for Recycling and Precursors
CNGR Advanced Material has partnered with Morocco’s royal holding company Al Mada to establish COBCO, investing $2 billion to build NMC, LFP, and battery recycling projects in Jorf Lasfar, with an annual capacity supporting over 1 million electric vehicles. In June 2025, the first phase of CNGR’s Morocco project commenced full operation, marking it as the first project of China’s new energy battery industry chain to become operational on the African continent. The base plans a complete industry chain, aiming to achieve an annual production capacity of 120,000 tons of ternary precursors, equipped with key metal refining and battery recycling units capable of processing over 60,000 tons annually.
02 Morocco’s Strategic Advantages
Morocco holds approximately 70% of the world’s phosphate reserves, a key source of core materials for LFP batteries. Its geographical proximity to Europe, stable political and economic environment, and free trade agreements with European and American markets make it an ideal choice for Chinese companies seeking global expansion. The Financial Times notes that Morocco’s low-cost production environment (36% lower battery production costs compared to other countries) and abundant resources such as cobalt and lithium further enhance its appeal.
The Moroccan government is actively promoting the electric vehicle industry, aiming to increase annual automotive production capacity to 1.4 million units by 2030 and raise the localization rate to 80%. This goal aligns closely with the investment plans of Chinese companies, creating a synergistic development between the government and enterprises.
03 Strategic Significance for Global Market Layout
The investments by Chinese companies in Morocco are not merely about capacity expansion but also part of a global market strategy. The U.S. Inflation Reduction Act of 2023 requires that critical minerals for batteries be partially sourced from the U.S. or its free trade partners, making Morocco a key node for Chinese companies to bypass trade barriers and enter the U.S. market.
The layout of companies like Gotion High-Tech serves not only European customers but also indirectly accesses the North American market through free trade agreements. As Morocco’s battery industry chain matures, the capacity of Chinese companies in Africa will directly serve the global market, forming a new model of “Made in Morocco, Sold Globally.”
04 Industry Chain Synergy
The presence of Chinese companies in Morocco has created a noticeable “chain effect”: Gotion High-Tech’s battery manufacturing, BTR’s anode and cathode materials, Tinci Materials’ electrolyte, CNGR’s precursors, and Yahua Group’s lithium refining collectively form a complete industry chain from raw materials to finished products.
This vertical integration not only reduces production costs but also enhances supply chain stability. The Moroccan government actively supports this industry chain development, with the Moroccan Fund for Deposit and Management (CDG) injecting $280 million into Gotion High-Tech to provide financial support for the project. Meanwhile, the government also facilitates land approvals, administrative procedures, and logistics support to ensure smooth project progression.
As investments from Chinese lithium battery industry chain companies deepen, Morocco is poised to become a bridgehead for China’s new energy industry going global. In 2025, projects by Gotion High-Tech, BTR, CNGR, Tinci Materials, and others are set to commence production, forming a battery production capacity supporting over 1 million electric vehicles annually, providing robust support for the new energy industry in Morocco and across Africa.
Source: WeChat Official Account——鑫椤锂电
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