The race for electric vehicle manufacturing is intensifying, and China is making its mark. After saturating its domestic market, the Middle Kingdom is now conquering the Old Continent. According to projections from the European Federation for Transport and Environment, the share of electric cars « Made in China » sold in Europe is expected to reach 25% by the end of the year.
At the heart of this ecosystem are electric battery manufacturers, ramping up investments to increase production capacity and meet the growing demands of automakers. Seeking proximity to the European market, these Chinese industrialists are more than ever setting their sights on Morocco.
Less than two months after signing a 3 billion dirham investment agreement for BTR New Material’s cathode factory at Mohammed VI Tanger Tech City, the industrial hub welcomes two new investors: Hailiang Group, one of the largest producers of copper automotive parts, and Shinzoom, specializing in lithium battery anode production.
The agreements for the installation of these two large-scale industrial projects were signed on Tuesday, May 14, at the Bank of Africa headquarters in Casablanca, by the president of the Tanger Tech Development Company, Othman Benjelloun, Hailiang’s president, Cao Jiangu, and Shinzoom’s president, Pi Tao. Also present were the president of the Tanger-Tetouan-Al Hoceima Region, Omar Moro, and the president of the Tanger-Mediterranean Special Agency (TMSA), Fouad Brini.
Production to start by late 2025
With an investment of 4.5 billion dirhams, Hailiang Group aims to build a plant in Tanger spanning 74 acres and creating 1800 jobs. Founded in 1989 with an annual turnover exceeding $30 billion, the group ranked 459th in the 2022 Fortune Global 500.
Hailiang Group markets 5 brands (Hailiang, Sanco, Turbiline, LHCT, and JMF) across around fifteen markets worldwide and operates 22 production units, notably in the United States, Germany, France, Italy, Spain, Vietnam, Thailand, and Indonesia.
Meanwhile, Shinzoom plans to invest approximately 4.6 billion dirhams to build its anode factory at Tanger Tech, covering 20 hectares and creating 2000 jobs. A Chinese leader in electromagnetic metallurgical equipment, Shinzoom has established itself as the third-largest Chinese producer of anodes, generating around $1 billion in revenue in 2023.
With an 11% market share in China, Shinzoom competes with BTR, which holds a 20% market share and is currently constructing its Moroccan plant at Tanger Tech with an expected annual production capacity of 50,000 metric tons.
Shinzoom’s clients include major automotive battery manufacturers such as China’s BYD, the world’s leading electric vehicle manufacturer, and Chinese giant CATL. The latter supplies Stellantis with batteries for compact electric vehicles under brands like Peugeot, Fiat, Citroën, DS, and Alfa Romeo. According to sources close to TelQuel, both new arrivals at Tanger Tech plan to start production by late 2025.
Two more suppliers by year-end
Since its effective launch in February 2023, no fewer than 14 investors have confirmed their arrival in the industrial hub. According to our information, after BTR, Hailiang, and Shinzoom, two more major industrialists will settle in before the end of this year: American supplier Aptiv in June, with an investment of nearly 4 billion dirhams, and Chinese tire manufacturer Sentury Tire in December, with a 3 billion dirham investment.
Of the 14 companies expected at Tanger Tech, 12 are Chinese. These investments are expected to create over 13,000 jobs in the region.
Of the 14 companies expected at Tanger Tech, 12 are Chinese. These investments are expected to create over 13,000 jobs in the region and contribute to increasing the integration rate of the automotive industry in Morocco.
« Thanks to the will of His Majesty the King, may God glorify him, we see today the enthusiasm that Chinese investors have for the development potential of our region; given the geographical position of this economic zone and the kingdom’s positioning on the global stage by the will of His Majesty. Our duty is to accelerate and facilitate any initiative in this direction to promote the national ecosystem. Our door remains open to all new investors wishing to settle in the region, » rejoiced Omar Moro, president of the Tanger region, contacted by TelQuel.
Also adding: « The realization of these projects has been the result of concerted efforts by several institutional and economic actors, with a constant desire to meet the challenge of launching an economic and industrial zone of excellence and offering opportunities for international companies operating in new sectors that will impact the overall economic configuration. »
Green asset
Training programs are also being developed, particularly within cities known for trade labor, to ensure the improved skill training of the labor pool, adapt them to the needs of new arrivals, and encourage the installation of other investors.
« Tanger Tech now hosts new sectors such as batteries, copper, anodes, decarbonization, and electric vehicles. To adapt to these new technologies that will increase the integration rate in the automotive industry, we are also working on implementing new training programs and supporting the upskilling of our human resources, » specifies the president of the region.
In addition to optimizing production chains and skilled labor pools, these industrialists are settling in Tanger Tech to benefit from green electricity in the future production of their products destined for the European market.
Indeed, on the other side of the Mediterranean, the European Union (EU) is preparing to enforce its carbon tax on all production carried out outside the European area. Products entering the EU will be subject to a tax from 2026 that takes into account the carbon footprint associated with their production and transport.
At the same time, the Tanger Med group, one of the developers of the new Tanger Tech industrial zone, is working towards carbon neutrality by 2030. As part of its new energy strategy, the group is committed to providing green electricity to all users of its ecosystem, which constitutes a significant competitive advantage for industrialists who have chosen Morocco to establish their factories.
Several renewable energy projects are also underway in the Tanger Med port, through which the majority of production destined for the European market passes, including two projects for photovoltaic installations on building rooftops, a project for floating photovoltaic installations at dam sites, and a wind farm project at the port logistics zone.
Other photovoltaic installation projects for supplying the Tangier Free Zone (TFZ) and the Tanger Automotive City (TAC) industrial acceleration zone are also scheduled.
Written by Safae Hadri, edited in English by Eric Nielson
