How did Tangier become China's gateway to the electric vehicle industry in Africa?
Investments exceeding $6 billion boost battery and automotive component production
Written by: Mohammed Omran
The Moroccan city of Tangier is no longer just a regional industrial center; in recent years it has transformed into one of the world's leading destinations for Chinese investments In the electric vehicle sector, it benefits from its strategic location at the gateway to Europe, the development of its infrastructure, and the free trade agreements that link Morocco to the European Union and the United States.
Tangier, Morocco, attracts billions of Chinese dollars to become the electric vehicle manufacturing capital of Africa.
The city is witnessing an accelerating influx of Chinese capital, at a time when global companies are racing to reshape the supply chains of the electric vehicle industry, amid growing European demand for clean vehicles and tightening customs restrictions on products manufactured within China.
$66 million from Jiangsu Uni
The latest investment comes from the Chinese company Jiangsu Yunyi Electric, which announced the construction of a new factory within the Mohammed VI Tangier Tech City with an investment of $66 million. The factory will specialize in producing electronic components for automobiles, such as voltage regulators, sensors, and smart wiper systems, with production destined for European and African markets. This marks the company's first production base outside of Asia.
Huge investments in electric car batteries
Chinese investments are not limited to automotive components; Tangier is also witnessing an expansion in battery manufacturing projects. BTR New Material Group launched a project to produce cathode materials used in lithium batteries with investments estimated at around $300 million, while Hailiang Group and Shinzoom invested approximately 9.1 billion Moroccan dirhams to establish factories for producing copper components and anode materials used in electric vehicle batteries, creating nearly 3,800 direct jobs.
Giant battery factory
Another prominent project is that of the Chinese company Gotion High-Tech, which is working to establish the first huge factory for electric car batteries in Morocco with investments starting from $1.3 billion in the first phase, with an expansion plan that reaches more than $6 billion, making it one of the largest battery projects in Africa and enhancing Morocco’s ability to meet the growing European demand for electric cars.
Why did Chinese companies choose Tangier?
The increase in Chinese investments is due to several factors, most notably Tangier’s distinguished geographical location, the presence of the Tangier Med port, the largest container port in the Mediterranean and Africa, in addition to the city’s proximity to Europe, free trade agreements with the European Union and the United States, as well as the presence of an integrated industrial system that includes Renault and Stellantis and hundreds of automotive component suppliers.
Morocco strengthens its leadership in the automotive industry
These investments have helped to consolidate Morocco’s position as the largest car producer in Africa, with the sector employing more than 220,000 workers. The Kingdom aims to increase its production to 1.5 million cars annually, focusing on electric cars and their components, which will boost its exports to European markets and attract more global companies.
The influx of Chinese investment into Tangier underscores the success of Morocco's industrial strategy in attracting high-value industries, particularly in light of the global shift towards electric vehicles. This trend also reinforces Morocco's position as a regional manufacturing and export hub, granting it an increasingly prominent role in global automotive supply chains in the coming years.
