As Morocco strives to adapt its burgeoning automotive sector to the rising demand for electric vehicles, Hailiang and Shinzoom, two major Chinese car battery makers will establish separate operations in the kingdom, both in Mohammed VI Tanger Tech City, after signing an agreement on Tuesday at Bank of Africa’s headquarters in Casablanca, according developing company “Société d’Aménagement de Tanger Tech (SATT)”.
Tanger Tech had announced that Hailiang intends to establish a 450-million-dollar copper facility on a 30-hectare plot of land that will create 1,800 jobs.
Shinzoom, a subsidiary of Hunan Zhongke, plans to invest $460 million in an anode facility spanning 20 hectares that will create 2,000 jobs, according to a statement.
The agreements, initiated by the Chairman of SATT, Othman Benjelloun; in the presence of the Chairman of the Tanger Med Group, Fouad Brini; and the Chairman of the Tangier-Tetouan-Al Hoceima Regional Council, Omar Moro; as well as the Chairman of Hailiang, Cao Jiangu; the Chairman of Shinzoom, Pi Tao; and their respective top management, represent a total investment of 910 Mln dollars in 2024.
SATT is developing a new, integrated, and intelligent industrial and residential city covering an area of 2,167 hectares in the Tangier region, and has already welcomed around ten operators since its effective launch in February 2023.
SATT is the result of a partnership among three leading national players, Bank of Africa, Tangier Med Special Agency (TMSA), and the Tangier-Tetouan-Al Hoceima Regional Council, in association with the Chinese company, China Communications Construction Company (CCCC), China’s leading public works and infrastructure group.
In April, the Moroccan government approved Chinese electric battery company BTR New Material Group (835185.BJE)’s plans to establish a plant in Tangier to manufacture crucial component cathodes.
Another Chinese firm, CNGR Advanced Material (300919.SZ), plans to develop a cathode facility in Jorf Lasfar, 100 miles south of Casablanca, where the government has set aside 283 hectares for electric battery sectors.
Last year, the Moroccan government and China’s Gotion agreed to examine establishing an electric car battery facility in the country, with a potential investment of up to 6.3 Bln dollars.
Morocco’s strategic location on the Strait of Gibraltar, its free trade agreements with important EU and US markets, and its existing automotive sector clusters are all attracting Chinese enterprises.
In 2023, the automobile sector led Morocco’s industrial exports with 14 Bln dollars, a 27% increase.
Morocco is home to manufacturing plants of Stellantis (STLAM.MI) and Renault (RENA.PA) which have an annual combined production capacity of 700,000 automobiles, as well as a network of local suppliers.