Al Mada, the holding company of Morocco’s royal family, is teaming up with CNGR Advanced Material Co., a Chinese battery component manufacturer, to build an industrial base in Morocco.
According to a report by Bloomberg, work will commence this year at the Jorf Lasfar location, with an anticipated initial production of battery materials by 2025, as noted in a shared statement from both entities. The project’s investment is projected to surpass 20 billion Moroccan dirhams (equivalent to $2 billion).
Morocco boasts a wealth of phosphate resources, essential in creating lithium ferrophosphate (LFP) cells that are becoming a staple in electric vehicles. Moreover, Morocco’s proximity to Europe, an expanding EV market, complements its advantageous trade relations with the United States.
This collaboration aims to produce precursors active materials tailored for nickel-cobalt-manganese (NCM) batteries, along with manufacturing units for LFP cathodes and facilities dedicated to recycling battery materials.
According to their statement, the venture’s production capability, enough to serve over a million EVs annually, will predominantly be for export. Discussions are underway with the state-run OCP Group to ensure a steady supply of necessary phosphates.
Al Mada, which is controlled by King Mohammed VI, owns stakes in major private companies in Morocco’s key sectors. The companies include AttijariWafa (banking), Managem (mining), Nareva (energy), Lafarge Cements and Marjane (retail). Al Mada also has investments in other African countries, including Cameroon, Ivory Coast, Rwanda and Gabon.