CHINA, 1 July 2023: Guangzhou Tinci Materials Technology, one of China’s leading manufacturers of materials for electric vehicle batteries, is planning to open a plant in Morocco. The plant is expected to cost USD 283m (MAD 2.8bn) and will have an annual production capacity of 200,000 tonnes. The plant will produce materials for lithium battery electrolytes, which are used in electric vehicle batteries.
The plant is being built in Morocco because the country has ample phosphorite ore resources, which are used to make lithium battery electrolytes. The plant is also expected to help Tinci to better serve the European market.
Morocco agreement with Yahua & LG
Tinci is not the first Chinese company to invest in the manufacture of electric vehicle battery materials in Morocco. In April, Yahua Industrial Group signed an agreement with Korea’s LG Energy Solution (LGES), the world’s second largest manufacturer of batteries for electric vehicles, to produce lithium hydroxide at a plant in Morocco.
The investment by Tinci and Yahua is a sign of the growing importance of Morocco as a hub for the production of electric vehicle battery materials. The country has a number of advantages, including abundant raw materials, a skilled workforce, and a strategic location near Europe and North America.
The growth of the electric vehicle market is expected to drive demand for lithium battery materials in Morocco. The International Energy Agency (IEA) estimates that the global market for electric vehicles will reach 125 million vehicles by 2030. This growth will require a significant increase in the production of lithium battery materials.
Morocco is well-positioned to meet this demand. The country has the potential to produce up to 10% of the world’s lithium by 2030. It also has a number of other advantages, including a stable political environment, a favourable tax regime, and a free trade agreement with the United States.
The investment by Tinci and Yahua is a major vote of confidence in Morocco’s potential as a hub for the production of electric vehicle battery materials. It is expected to help to create jobs, boost economic growth, and attract further investment in the sector.