Morocco’s gigafactory project and EV ecosystem have been boosted with the $280 million new investment announced Wednesday by Chinese Tinci Company for its plant to be built in the North African Kingdom.
The new factory will produce and sell lithium-ion battery materials. It will also help the Chinese firm to better serve the European market, said Tinci, noting that Morocco has ample phosphorite ore resources.
Tinci’s announcement comes few weeks after Gotion High-Tech, a giant Chinese battery cell manufacturer and Volkswagen partner, agreed with Moroccan government on building in the country a 100 gigawatt-hour (GWh) battery facility, Africa’s first gigafactory.
The agreement also includes setting up “integrated industrial ecosystem” to produce batteries used in electric vehicles (EVs) and energy storage systems. The estimated investment could reach up to $6.4bn and the project is expected to create 25,000 jobs over 10 years.
Morocco is engaged in global race for hosting a gigafactory to support its auto industry as it goes electric. To attract FDI in the EV supply chain, the North African Kingdom highlights its competitive edge, political stability, lower operating costs, the presence of major automakers, including Renault and Stellantis, their suppliers and the availability of cheap renewable energy.