China-Morocco Electric Battery Joint Venture

Moroccan investment fund Al Mada, controlled by the royal family, and Chinese group CNGR, which produces materials for lithium-ion batteries, announced the creation of a joint venture in Morocco to produce key components for electric batteries. This is a $2 billion agreement aimed at converting natural resources (specifically cobalt, phosphate, and manganese) into useful materials for making batteries and recycling components from end-of-life batteries. The agreement was announced by CNGR itself on September 20.

The industrial complex will be located in Jorf Lasfar, in the El Jadida region of Morocco, and will have sufficient production capacity to produce 1 million electric vehicles. As the CNGR group says, “Jorf Lasfar’s strategic location and relatively complete industrial infrastructure will provide good conditions for the construction and production of the project, helping it to position itself favorably in the intense competition of battery materials worldwide and to establish an advanced industrial base for battery materials in the world and in the pan-Atlantic region. A strong alliance to create a green, circular, and complete new energy supply chain for the automotive industry.”

Beijing’s choice is dictated by the fact that Morocco is one of the world’s main producers of cobalt and phosphates, and has strategic implications, as it will be able to more easily access European markets from North Africa.

“The Al Mada Group,” the press release further reads, “has signed a cooperation agreement with CNGR, and both parties will take full advantage of their respective strengths to help increase Africa’s influence in the global new energy industry and create a more positive impact in the fight against global climate change. The joint venture will strive to ensure responsible and sustainable production, with a focus on green energy and making full use of Morocco’s advantageous resources.”