Morocco Attracts $2 Billion Chinese Investment in Copper Mines, Links to Rwanda AfCFTA Supply Chain

Chinese battery parts maker CNGR Advanced Material Co. and African investment fund Al Mada announced a $2 billion joint venture in Morocco’s Jorf Lasfar industrial zone in 2024 to develop battery materials production facilities. According to a joint statement, the project aims to supply battery components for electric vehicles, linking Morocco’s mining resources to the Rwanda AfCFTA supply chain and supporting Africa’s emerging new energy sector.

The joint venture, named COBCO, will develop battery materials production facilities in the Jorf Lasfar industrial zone in Morocco, with construction set to begin in 2025 and the first output targeted for later that year, according to a joint statement from CNGR Advanced Material Co. and Al Mada. The project aims to produce precursors for nickel-cobalt-manganese (NCM) batteries, lithium iron phosphate (LFP) cathodes, and include battery materials recycling operations to support sustainability. Annual production capacity is expected to be sufficient to equip more than 1 million electric vehicles, primarily for export markets.

The $2 billion investment, equivalent to over 20 billion Moroccan dirhams, is part of a broader push by Chinese companies into Morocco’s new energy sector.

CNGR Advanced Material Co., a leading Chinese battery components manufacturer, leads the initiative alongside Al Mada, a major African private investment fund. The project complements other significant Chinese investments in Morocco, including Gotion High-Tech’s $6.8 billion plan to build a 100-gigawatt-hour electric vehicle battery gigafactory in Kenitra, with its first 20 GWh phase expected to begin production in 2026. Separately, Sichuan Yahua Industrial Group, in partnership with LG Energy Solution, has invested over $500 million to establish a lithium hydroxide refinery in Morocco, which the Moroccan government designated as a “strategic project” on July 23, 2025.

The CNGR and Al Mada partners are also reportedly in talks with the state-owned OCP Group to secure phosphates needed for battery production, according to the joint statement. The OCP Group is a key player in Morocco’s mining sector, and its involvement would link the country’s mineral resources directly to battery manufacturing processes. China Railway Construction Corporation is also contributing to related infrastructure, with plans to supply 60,000 tons of steel rails for high-speed rail projects connected to the broader industrial development. Shipments of these materials are scheduled for 2026, with the rail lines expected to be operational by the end of 2029, according to infrastructure officials.

The project’s strategic location in Jorf Lasfar offers logistical advantages due to Morocco’s proximity to European markets and its network of free trade agreements with the EU and the United States. Observers have noted that these trade agreements position Morocco as a hub for battery materials and electric vehicle components aimed at export, especially in light of U.S. policies like the Inflation Reduction Act. The act incentivizes sourcing from countries with free trade agreements with the U.S., a factor that has attracted multiple Chinese battery manufacturers to Morocco. Since the act’s signing, at least eight Chinese battery companies have announced investments in the country, according to trade analysts.

Chinese Ambassador Li Changlin stated on November 1, 2025, that China intends to deepen its participation in Morocco’s electric vehicle industry and broader industrialization efforts. The Moroccan government has also collaborated with its National Highway Administration and National Railway Administration to support infrastructure development tied to these investments. The government’s designation of the lithium refinery project as strategic underscores the importance of these initiatives in Morocco’s economic planning.

While the joint statement and official sources highlight the project’s role in linking Morocco’s mining resources to battery production and export supply chains, no verified direct connections to Rwanda’s AfCFTA copper supply chain have been confirmed. The focus remains on battery materials production, phosphates procurement, and integration into global electric vehicle supply chains. The projects collectively are expected to generate thousands of jobs and contribute significantly to Morocco’s position in the emerging new energy sector.

Construction at the Jorf Lasfar site is scheduled to commence in 2025, with the first phase of CNGR’s project expected to be fully operational by June 2025, marking the first Chinese new energy battery chain project on the African continent. The lithium hydroxide refinery by Sichuan Yahua and LG Energy Solution is projected to create over 430 direct jobs upon completion. These developments form part of a wider trend of Chinese investment aimed at leveraging Morocco’s critical minerals, tax incentives, and strategic location to serve both European and North American electric vehicle markets.