An electric vehicle (EV) battery parts maker has become the latest Chinese company to begin production in Morocco to target lucrative European and North American markets, while avoiding punishing Western tariffs.

CNGR Morocco New Energy – a subsidiary of China-based CNGR Advanced Material – holds a majority 50.03 per cent stake in joint venture COBCO, while African investment fund Al Mada owns the rest. The plant near Morocco’s Jorf Lasfar deep water commercial port started producing nickel-based precursor cathode active materials (PCAM) in late January.

The facility is part of a US$2 billion deal signed in 2023 aimed at building an industrial base integrating ternary precursors, lithium-iron phosphate (LFP) and waste battery recycling. It is the latest move in the country by Chinese companies to circumvent tariffs and other import restrictions imposed by the United States and European Union.

The plant will initially produce nickel-cobalt-manganese (NCM) battery materials used to make lithium-ion batteries for EVs. This represents an important step in its journey to establish an “ecosystem for sustainable battery material production”, COBCO said in a statement on January 24.

“These lines’ start-up has positioned the company as a key player in meeting the growing global demand for battery components, particularly in the European and American markets,” the statement said.

Future plans call for the plant to be expanded to produce LFP cathode active materials and black mass recycling facilities, creating a combined production capacity equivalent to 70 gigawatt-hours , enough to power more than 1 million electric vehicles annually, according to COBCO.