$2 billion Morocco EV battery factory begins production

From the newsletter

COBCO, a joint venture between Moroccan investment fund Al Mada and Chinese battery materials producer CNGR Advanced Materials, has begun production of lithium-ion battery components in Morocco. In the first phase, the $2 billion plant is producing precursor cathode active materials (pCAM), specifically nickel-manganese-cobalt (NMC).

• COBCO is the first company in Africa to make NMC battery materials and is mainly targeting Europe’s battery industry. It has already secured a supply agreement with Belgian-French multinational Umicore. 

• The COBCO factory represents a significant step up in Morocco's ambition to become a hub for EV batteries. It could also stimulate battery manufacturing in the broader region. 

More details

• The plant targets an annual capacity equivalent to 70 GWh, enough to equip one million vehicles, according to the project’s proponents. It aims to reach an annual production capacity of 120,000 tonnes of NMC precursors and 60,000 tonnes of lithium-iron-phosphate (LFP) cathodes. The production of  LFP cathodes will begin once a regional LFP battery ecosystem emerges, said COBCO. 

• The COBCO plant is a key piece of Morocco’s strategy to gradually build an elaborate EV battery supply chain with the help of Chinese investors. The North African country has attracted multi-billion-dollar battery projects, with investors seeking to use the country’s proximity to Europe to sell to the lucrative European market amid trade restrictions on Chinese products.

• Morocco is the only African country with a free-trade agreement with the US, and this will enable the Chinese companies to access the vast market across the Atlantic amid steep US tariffs on Chinese EVs and vehicle parts. It also has a free-trade agreement with the European Union, a deal that has made Morocco the largest supplier of motor vehicles to the region. 

• The biggest of these battery projects is perhaps the one being undertaken by Gotion High Tech, a Sino-European company that is building Africa's first gigafactory in Morocco, for a total investment of $6.5 billion. Production from this factory, which is located in Kenitra, is expected in the third quarter of 2026. The factory will start with an annual production capacity of 20 GWh with the capacity to scale it up to 120 GWh. 

• BTR New Material Group, one of the world’s largest suppliers of lithium battery cathode and anode materials, is also investing in two plants in Tangier; one for 50,000 tonnes of cathode material and another for 60,000 tonnes of anode material. The cathode plant targets to launch later this year, while the anode plant is scheduled to ramp up production by 2026 or 2027.

• Zhejiang Hailiang, one of China’s biggest copper processing and alloy manufacturing companies, is developing a 150,000-tonne facility in Tangier, while CNGR Advanced Material, a global leader in nickel-based cathode precursor materials and battery recycling, is setting up a facility in Jorf Lasfar to produce nickel sulphate and phosphate-based products.

• Shinzoom, another Chinese high-tech enterprise specialising in anode materials for lithium-ion batteries, is building a 100,000-tonne anode material plant, also in Tangier, with a total investment of $690 million. Production is expected to begin between late 2026 and early 2027, serving both local battery assemblers and export markets. 

Our take

• With pCAM, cathode, anode, and eventually full battery cell production coming online, Morocco is poised to become the continent’s only vertically integrated EV battery hub—serving European, American, and potentially African markets. This may trigger additional downstream investment in EV assembly and battery pack integration.

• As trade tensions push Western firms to diversify supply away from China, Morocco’s free-trade access to the EU and US could make it a strategic alternative. This will likely attract even more European, American, and Asian companies seeking tariff-free routes and just-in-time logistics for battery components.

• To support large-scale production, Morocco and investors should seek partnerships with African countries rich in lithium, cobalt, and manganese like the DRC, Zimbabwe, and Namibia, triggering a new wave of mining, refining, and cross-border logistics infrastructure in West and Southern Africa.