Chinese investment in electric vehicles and new energy in Morocco has “exploded”, as companies hope to circumvent tariffs and other import restrictions imposed by the U.S. and Europe, according to Chinese Ambassador to Morocco Li Changlin. Construction on a Chinese-backed manufacturing and technology hub is progressing well, according to Li, who visited the Mohammed VI City for Science and Technology last month. During the visit, Li noted that the USD1 billion tech hub in Tangier, which will host hundreds of Chinese companies, is “an important symbol of the high-quality joint construction of the ‘belt and road’ between China and Morocco”, a reference to the Belt and Road Initiative (BRI), Beijing’s plan for global trade and infrastructure. Observers said Morocco’s proximity to Europe, abundance of critical minerals, and free-trade agreements with both the European Union and the U.S. have attracted a growing number of Chinese companies that have pumped billions of dollars into building electric vehicle battery and EV manufacturing plants.
“Chinese companies have invested heavily in Morocco’s renewable energy, new energy vehicle batteries and other fields, playing a positive role in promoting Morocco’s energy transformation and the development of the automotive industry,” Li said at the tech park, which is being built by Chinese companies led by China Road and Bridge Corp.
Ambassador Li also visited the site of BTR Morocco in the Tangier tech city, where Chinese battery maker BTR New Material Group is building a USD300 million cathode factory. Morocco has a free-trade agreement with the United States, and Chinese companies in the North African country are reorganizing their operations to enjoy incentives under Washington’s Inflation Reduction Act. The USD430 billion law is aimed at fighting climate change by giving tax credits to consumers who buy EVs. Morocco also has a free-trade deal with the EU, which Chinese companies can use to bypass tariff barriers. The EU imposed additional duties of up to 37.6% on electric vehicles from China to protect the bloc’s auto industry from what it has called “market-distorting subsidies” from the Chinese government. A month earlier, the U.S. imposed 100% tariffs on Chinese-made electric vehicles.
Morocco, strategically located at the crossroads of Africa and Europe, has attracted multibillion-dollar investments into its battery and EV industries. Among these was a USD1.3 billion deal by Chinese-German battery-maker Gotion to build a gigafactory in the country. Gotion expects to begin production at the plant in the third quarter of 2026 with a battery capacity of 20 gigawatts hours (GWh) per year. Chinese battery parts maker CNGR Advanced Material announced in September it was teaming up with Moroccan private investment fund Al Mada to build a USD2 billion industrial base.
Other deals include investment from Youshan, a subsidiary of China’s biggest cobalt refiner Huayou, which is partnering with South Korea’s LG Chem to build a lithium iron phosphate (LFP) cathode materials plant in Morocco.
“As companies seek to mitigate risks related to geopolitical tensions and trade barriers, regional hubs like Morocco become increasingly important,” Abdelmonim Amachraa, a value chain and sustainability expert who previously worked in Morocco’s Ministry of Industry and Trade, said. The non-tariff barriers imposed on Chinese electric vehicles by the U.S. and EU complicated direct access to these markets. “By setting up production in Morocco, Chinese companies can bypass these obstacles by producing locally and meeting the necessary standards from the outset. Morocco, with its trade agreements and favorable regulatory framework, can play a crucial role in facilitating this transition,” Amachraa said. Morocco is already a major car manufacturing hub for European car manufacturers such as Stellantis and Renault. The auto industry accounted for around a fifth of its GDP, exporting USD6.4 billion worth of passenger vehicles last year, according to Morocco’s “Office des changes”, as reported by the South China Morning Post.
