For the past eighteen months, Chinese investment announcements in the battery value chain have followed one another at a steady pace. In fall 2023, CNGR Advanced Materials had already sealed a strategic alliance with the Al Mada fund to set up a precursor site in Jorf Lasfar, the future COBCO.

In spring 2024, cathode specialist BTR New Material Group received the green light from Rabat to build a 50,000-ton plant near Tangier, while, a few weeks later, Hailiang and Shinzoom announced two twin units for copper foil and anodes in the same industrial zone.

After a wave of announcements from Chinese manufacturers, one of them is finally materializing. The result of a Moroccan-Chinese partnership between Al Mada and CNGR, COBCO is building the first gigafactory for electric battery components on the Atlantic coast in Jorf Lasfar. A look back… pic.twitter.com/NXv3Z1wXbo

— TelQuel (@TelQuelOfficiel) June 30, 2025

On June 7, 2024, it was Gotion High Tech that unveiled a gigafactory project in Kénitra, with the ambition of delivering its first modules in 2026. Today, one of those promises is entering a new phase: the COBCO joint venture is moving from words to its first tons coming off the production line.

That is why June 25, 2025, may mark a new milestone for Moroccan industry. On that day, in the Jorf Lasfar industrial zone, it wasn’t OCP at the center of attention but a one-of-a-kind factory in our part of the world. COBCO, the result of a partnership between the royal holding Al Mada and Chinese company CNGR, inaugurated its first production line for NMC (nickel-manganese-cobalt, see box) precursors—those essential components of the batteries powering the global electric revolution, especially electric vehicles.

Eventually, this factory is expected to produce 120,000 tons of NMC precursors and LFP cathodes (see box below), both essential to the production of batteries for electric vehicles. Enough to equip nearly one million vehicles each year. The COBCO factory in Jorf Lasfar marks a turning point: it becomes the first factory of this scale to operate outside the Asian continent.

By 2030, the global battery market is projected to reach 440 billion dollars. Within this value chain, the global market for NMC precursors is currently estimated at 15 billion dollars.

And this first factory puts the Kingdom in a strong position to claim its share of these strategic markets. With an investment of 20 billion dirhams, this development positions Morocco as a player in the battery industry in the context of the global energy transition.

A strategic partnership between Al Mada and CNGR

The story of this alliance begins in the shadows. It’s unclear who initiated contact, but we can guess when it started. In March 2023, our colleagues at Desk revealed negotiations between the Al Mada group and the Chinese giant in precursor manufacturing, CNGR Advanced Materials.

Listed on the Shenzhen Stock Exchange, the company has a market capitalization of nearly 40 billion dirhams. Led by Deng Weiming — 63rd richest person in China, according to a 2021 Forbes ranking — it counts among its clients European automakers, Tesla, as well as LG Chem and Samsung SDI.

CNGR’s choice of Morocco is explained by several factors: its geographic location offering access to European and American markets, a stable political environment, competitive industrial costs, and free trade agreements with the European Union and the United States.

These agreements allow the precursors produced in Jorf Lasfar to benefit from tariff advantages in these markets.

“Between 20 and 40% of the value of an electric vehicle comes from its battery”

The Chinese group intends to fully capitalize on these markets thanks to a specific feature of the electric vehicle industry. “Between 20 and 40% of the value of an electric vehicle comes from its battery,” notes a sector specialist.

Morocco’s selection thus facilitates access to these strategic markets for CNGR, since the factory’s production can, in principle, avoid several taxes. This vision is echoed by Thorsten Lahrs, CNGR’s head of Europe, who declared to the specialized outlet Benchmark Minerals in summer 2024 that Morocco is a true industrial “sweet spot.” He particularly emphasized the country’s efficient logistics, competitive costs, stable political environment, and geographic proximity to European markets.

Creation and rapid development of COBCO

In September 2023, Al Mada and CNGR formalized their partnership with the creation of the COBCO joint venture. The Jorf Lasfar site was selected for its logistical and industrial advantages.

The chosen industrial zone offers several advantages. First and foremost, its immediate proximity to OCP’s industrial complex for the future production of LFP (lithium-iron-phosphate) cathodes. The COBCO plant also benefits from access to desalinated water—a crucial resource for industrial processes—and to clean electricity available in sufficient quantity.

COBCO plans to use 80% green energy in 2025 and to operate entirely on renewable energy in 2026, thanks to agreements made with developers. This approach meets European requirements concerning the upcoming carbon tax on products manufactured outside the European Union. The plant can source raw materials from OCP for phosphate and from Managem (a subsidiary of Al Mada) for cobalt.

Contracts for the construction of the plant began being negotiated in November 2023, one month after the creation of COBCO. An initial on-site mobilization—the actual start of construction—was launched in January 2024. The project is developing at an unprecedented pace, as COBCO draws on the expertise of CNGR’s partners for the construction of the plant.

Suppliers are identified by the Chinese giant. Nearly a year after the start of construction, commissioning (equipment start-up) begins in January 2025. An achievement in Morocco, but a daily reality for Chinese manufacturers.

The ecosystem of tomorrow takes shape

On June 25, COBCO completes the first phase of its development. The plant can now produce 40,000 tons of NMC precursors.

If we consider a floor price of 10 dollars per kilo of NMC precursors and an annual production capacity of 40,000 tons, the COBCO plant could generate an annual revenue of 400 million dollars. According to our information, the Moroccan-Chinese joint venture is considering doubling this capacity to reach 80,000 tons per year in the medium term, depending on how the order book evolves.

The future of the plant is taking shape through two complementary strategic projects. An LFP cathode production line will expand the technological offering, meeting the growing demand for these safer and more durable batteries. At full capacity, the plant aims to supply 25% of the Euro-American electric battery market.

A black mass recycling unit (material from used batteries) with a capacity of 30,000 tons per year is also planned. Black mass contains strategic metals such as lithium, nickel, and cobalt. COBCO is holding discussions with battery suppliers and European and American clients for the acquisition of this material.

The official launch of COBCO is part of a broader movement of battery industry players in Morocco. The near-simultaneous establishment of major battery players—such as Gotion High Tech, specializing in battery cell production, BTR for cathodes and anodes, and Shinzoom, which is expanding its anode production at Tanger Tech—outlines the contours of a Moroccan battery ecosystem.

For now, the company appears primarily export-oriented but does not rule out local synergies. The strengthening of this ecosystem is also taking place through technology and know-how transfer in concrete ways: several Moroccan managers have received extensive training in China.

An approach reminiscent of the skills development model that contributed to the growth of Morocco’s automotive industry.

Beyond the direct jobs created and the exportable value generated, COBCO is paving the way for a new industrial sector in Morocco.

This installation positions the Kingdom in a global battery market estimated at 440 billion dollars by 2030, going beyond the scope of a simple 20 billion dirham investment. From the signing of the agreement between Al Mada and CNGR to the inauguration in Jorf Lasfar, COBCO illustrates the development of a new industrial dynamic. Beneficial for all? The answer will come in a few months.

Written in French by Yassine Majdi, edited in English by Eric Nielson