Morocco secures $282m EV battery deal

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Tinci Materials Technology, a leading Chinese supplier of electrolytes and electrolyte chemicals for lithium batteries, has signed a $282.3 million deal with Morocco to build a factory. The plant will have an annual production capacity of 150,000 tons of electrolytes and other key lithium battery raw materials. Tinci has pledged to start production by 2028.     

• Morocco has free trade agreements with the US and the EU. Under a cloud of tariffs from the two regions, Chinese companies are moving to Morocco to continue to access lucrative markets. 

• The North African country is leading Africa’s push to attract big-money investments in the electric vehicles and components industry, especially from China. 

More details

• Tinci is the latest in a growing list of battery companies, mainly Chinese, that are investing heavily in production facilities in Morocco. For instance, Gotion High-Tech, another Chinese battery manufacturer, will begin production of EV batteries at its Morocco gigafactory in the fourth quarter of 2026.

• Gotion’s plant will be the largest EV battery factory in Africa with an initial production capacity of 20 GWh, with plans to expand to 100 GWh in the future. The initial investment is estimated at $1.3 billion. Other Chinese battery companies setting up shop in the North African country include BTR New Material Group, CNGR Advanced Material, Hailiang, and Shinzoom.

• But Tinci’s investment is especially significant, because it targets a critical bottleneck in the EV supply chain: battery-grade electrolytes. These chemicals are essential for lithium-ion battery performance, and global demand is skyrocketing. By localising production in Morocco, Tinci not only diversifies its manufacturing footprint but also strengthens the resilience of global EV supply chains.

• Morocco is already registering the benefits of these new, multi-million-dollar investments in its EV industry. They are generating thousands of new jobs, and promise to boost exports. With a competitive automotive industry of its own, the components could also help support the country's growing EV manufacturing capability.

• This comes at a time when the African EV market is projected to grow from $17.41 billion in 2025 to $28.3 billion by 2030, with a CAGR of 10.2%. This growth is fueling demand for local battery production and supply chain development. As Morocco establishes a strong battery production industry, it will become a major supplier to EV companies in Africa. 

• Africa has abundant wealth of minerals used to make batteries such as lithium, cobalt, copper and manganese. However, these minerals are mainly exported in raw form with the continent lacking a serious battery manufacturing industry. Countries like Zimbabwe, Zambia and DR Congo are exploring establishing factories to process these minerals locally to create additional value. 

Our take

• Seeing the success of Morocco, countries like DRC, Zambia, and Zimbabwe should fast-track industrial policies to capture more value from their mineral exports. This could help establish regional corridors, connecting resource extraction in Central/Southern Africa with processing hubs in North or East Africa. 

• As geopolitical tensions and tariff walls rise, Africa, particularly North African countries that are close to Europe such as Morocco, Algeria, Tunisia and Egypt, could become “neutral zones” for Chinese firms to serve Western markets. 

• With domestic battery supply growing, pan-African EV assembly and parts manufacturing may finally become viable. Regional trade frameworks like AfCFTA could help synchronize rules of origin, making it easier to build EV components.