How Morocco became a strategic hub for Chinese manufacturers

Morocco is becoming a key player in the electric car industry, with Chinese companies investing in the country to establish factories. These investments reach billions of dollars, benefitting the country’s economy and increasing job opportunities. This makes the kingdom a key player in the EV manufacturing industry and puts it in a strategic position between the West and the East.

China recently invested near Tangiers to benefit from its close proximity to the Atlantic Ocean, establishing new factories to make parts for EVs that may qualify for $7,500 credits to car buyers in the United States.

Investments such as Gotion High-Tech, the Chinese-German battery maker, a deal with Morocco for a $6.4 billion investment, BTR Group, the Chinese world leader in cathode production for EV batteries, investing €277 million in a factory in Morocco’s Mohammed VI Tangier Tech City, creating up to 2,500 jobs, and Companies like CNGR and have announced multimillion-dollar plans to establish manufacturing facilities in Morocco.

Chinese companies are choosing Morocco, leveraging the kingdom’s strategic location but, most importantly, its free trade agreement with the United States. After the United States and European Union have both imposed new tariffs on Chinese vehicle imports, the United States has also enabled new rules regarding tax credits, giving carmakers reasons to reduce their dependency on China to qualify for the subsidies.

These U.S. subsidies will boost Morocco’s economy, developing the Kingdom to be a pivotal player in the global electric vehicle supply chain. They will also bring significant opportunities and growth to the nation’s industrial landscape, as since President Biden signed the Inflation Reduction Act, at least eight Chinese battery makers have announced new investments in Morocco.

It’s worth noting that Morocco hosts over 250 automotive-related companies and exports nearly $14 billion in cars and parts annually.