Al Mada partners with Chinese battery maker CNGR to establish a $2M Battery EV base in Morocco.
Al Mada, an African private investment fund controlled by the Moroccan royal family, has announced a partnership with CNGR Advanced Material Co., a Chinese battery component manufacturer, to establish an industrial EV base in Morocco, according to a report by Bloomberg.
Al Mada is currently present in 27 African countries and has since 2017, invested €600 million in African countries excluding Morocco. Its major responsibility as a long-term private equity fund is to contribute to the emergence of the continent by devoting itself to its major development projects and by committing itself to the South-South cooperation dynamic.
However, this collaboration aims to capitalize on Morocco’s abundant phosphate resources and its strategic location near Europe, a burgeoning electric vehicle (EV) market. The joint venture will focus on developing battery materials and components for the growing EV industry, with an initial production target set for 2025.
The estimated investment for the project exceeds 20 billion Moroccan dirhams, equivalent to $2 billion.
According to a report, Morocco’s vast phosphate reserves make it an ideal location for the production of lithium ferrophosphate (LFP) cells, which are increasingly in demand for Electric Vehicles.
The proximity to Europe and favorable trade relations with the United States further enhance Morocco’s appeal as a strategic base for battery manufacturing. The collaboration between Al Mada and CNGR Advanced Material Co. will primarily center on producing precursors and active materials for nickel-cobalt-manganese (NCM) batteries.
Additionally, the partnership will establish manufacturing units for LFP cathodes and facilities dedicated to recycling battery materials. The joint venture aims to have a production capacity sufficient to serve over a million Electric Vehicles annually, with a focus on exporting the products.
This recent collaboration follows another significant development in Morocco’s EV industry. In July 2023, the Moroccan government and Gotion High Tech, a Chinese battery manufacturer, expressed interest in establishing an Electric Vehicle battery plant in the country.
The potential investment involved in this project could reach $6.3 billion, and the proposed factory’s production capacity is expected to be 100 gigawatts. While a final decision on the plant’s establishment is pending, these discussions highlight Morocco’s commitment to becoming a major player in the global Electric Vehicle battery market.
Morocco has actively positioned itself as an attractive destination for large-scale EV battery factories. The country’s existing automotive and renewable energy sectors, coupled with the availability of raw materials such as cobalt and phosphates, make it an appealing choice for investors.
Morocco already hosts production plants for renowned automobile manufacturers like Renault and Stellantis, with a combined capacity of 700,000 vehicles. Moreover, the country boasts a cluster of car part makers, further solidifying its position as an automotive hub.
The demand for EV batteries is not only growing globally but also within Morocco itself. Citroen, a prominent automaker, has a production capacity of 50,000 supermini electric cars in the country.
The automotive sector has emerged as a significant contributor to Morocco’s industrial exports, generating 111 billion dirhams ($11.1 billion) in revenue last year, representing a 33% increase compared to the previous year.
The collaboration between Al Mada and CNGR Advanced Material Co. and the potential establishment of an Electric Vehicle battery plant with Gotion High Tech demonstrate Morocco’s commitment to fostering a robust and sustainable EV industry.
With its abundant resources, favorable trade relations, and strategic geographical location, Morocco is poised to play a pivotal role in meeting the growing global demand for electric vehicles and their associated battery technologies.
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Al Mada partners with Chinese battery maker to establish a $2M EV base in Morocco, September 20, 2023
