Morocco emerges as key hub for Chinese investments in North Africa’s automotive sector
This surge in foreign investment, centered primarily in Tanger Tech, reflects a burgeoning economic partnership between Morocco and China, bolstering the kingdom’s position on the global stage.
In early 2023, Chinese tire manufacturing giant Sentury Tire spearheaded this investment wave by announcing the construction of a factory spanning 20 hectares in Tanger Tech.
With an investment of $490 million, the plant is set to produce 12 million tires annually, mainly for export to the United States.
The facility is scheduled to open in September 2024, marking the beginning of a series of similar large-scale industrial projects.
Among these initiatives is a significant project by BTR New Material Group, a leading player in the production of components for EV batteries.
In March 2024, the group signed an agreement with the Moroccan government to build a cathode production facility, a critical component of lithium-ion batteries.
The factory, which represents an investment of 3 billion dirhams, is expected to start operations in 2026 with an initial production capacity of 25,000 tonnes per year, which could eventually expand to 50,000 tonnes.
Further cementing its commitment to Morocco, BTR announced in August 2024 a second project at Tanger Tech—a dedicated anode materials plant with an investment exceeding $363 million and a projected capacity of 60,000 tonnes annually.
Other Chinese companies are following suit. In May 2024, Hailang and Shinzoom, companies specializing in automotive copper components and lithium-ion battery anodes, respectively, announced plans to invest a combined $910 million in Tanger Tech.
Their projects will cover 50 hectares and are expected to generate around 4,000 jobs, reinforcing Tanger Tech’s role as a key automotive industry hub in Africa.
These investments not only signify a growing economic alliance between Morocco and China but also position Morocco as a pivotal player in the global EV supply chain.
With these developments, Tanger Tech is on track to become a crucial destination for automotive and technology industries in Africa, driving economic growth and creating thousands of jobs.
