Morocco signs $500m China-backed EV battery plant deal to process local cobalt and nickel

Morocco signed a $500 million agreement Wednesday to build a China-backed electric vehicle battery plant that will process local cobalt and nickel. The project aims to add value to Morocco’s mineral resources and expand its role in the EV supply chain, officials said.

The $500 million project is part of Morocco’s broader strategy to develop its electric vehicle supply chain by processing locally sourced cobalt and nickel, officials said. The plant aims to add value to Morocco’s mineral resources rather than exporting raw materials, aligning with the country’s push to become a manufacturing hub for battery and automotive industries, according to statements from Chinese and Moroccan sources.

Chinese battery-material company BTR New Material Group is constructing a $300 million cathode production facility within Tangier Tech City, according to Reuters reporting.

Chinese involvement is a key feature of the deal, described as “China-backed” to reflect industrial participation and financing from Chinese enterprises. Chinese Ambassador to Morocco Li Changlin highlighted the surge in Chinese investment in Morocco’s renewable energy and new-energy vehicle battery sectors. Li said Morocco has “emerged as a new focal point for Chinese enterprises seeking to invest abroad,” emphasizing the country’s strategic location near Europe, its critical-minerals deposits, and trade agreements with the European Union and the United States as major draws for investors.

The agreement complements a series of Chinese-backed battery-material projects underway in Morocco. Another significant project includes a $1.3 billion agreement with Gotion to build a gigafactory expected to begin production in the third quarter of 2026, with an annual capacity of 20 gigawatt-hours. Additionally, CNGR Advanced Material has announced a $2 billion industrial facility in partnership with Moroccan private investment fund Al Mada.

These projects collectively represent a growing battery-supply-chain cluster in Morocco, aiming to develop downstream processing capacity for battery inputs sourced from local minerals. Analysts cited by officials note that Morocco’s cobalt and nickel deposits are critical to attracting Chinese investment and building a regional supply chain closer to European markets. The country’s free-trade agreements with the EU and US are viewed as incentives that help Chinese firms circumvent tariffs and import restrictions in Western markets.

Li’s remarks came during a visit to a Chinese-supported manufacturing and technology center in Morocco, underscoring the diplomatic and economic ties underpinning these industrial developments. The ambassador pointed to Morocco’s expanding role in the EV battery value chain as part of China’s broader international manufacturing strategy.

The battery investment boom in Morocco is occurring alongside rapid growth in the country’s automotive sector. Chinese firms are increasingly using Morocco as a manufacturing base to serve European markets, leveraging the country’s geographic proximity and trade partnerships. Production timelines for these projects vary, with the BTR cathode plant already under construction and the Gotion gigafactory slated to start output by late 2026.

Morocco’s efforts to build domestic processing capabilities reflect a regional trend of securing supply-chain footholds closer to end markets, particularly in Europe. The country’s mineral resources and strategic positioning have attracted significant foreign direct investment in strategic industries such as electric vehicles and battery materials, according to local reports and international analysts.

This latest agreement follows previous industrial partnerships and investments that have positioned Morocco as a growing hub for battery materials and EV manufacturing in Africa. The integration of Chinese capital and technology is expected to continue shaping the sector’s development in the coming years.