China’s role in the global electric vehicle (EV) battery market has expanded rapidly in recent years. Chinese companies are establishing strategic partnerships around the world. One of these growing collaborations is in Morocco, one of the key regions for Chinese EV battery production. However, recent developments are reshaping the landscape of these investments, both politically and economically. In the United States (US), the Donald Trump administration plans to reassess policies on Chinese battery imports, raising questions about how this will affect Chinese operations in Morocco.
To understand China’s growing influence in the EV battery industry in Morocco, it is important to first look at the broader context of China-Africa partnerships. These partnerships often focus on the extraction and processing of valuable battery materials such as cobalt, lithium and nickel, and are used as strategic tools to overcome Western trade barriers. Leveraging Africa’s rich resource base, China is not only securing the raw materials needed for EV battery production, but also expanding its market reach by establishing production centers in countries such as Morocco. These moves are driven by China’s desire to maintain a presence in the EV market despite geopolitical challenges posed by countries like the US. These partnerships, involving both Chinese companies and local African governments or companies, represent a model of economic cooperation aimed at reducing China’s dependence on Western markets and ensuring a steady supply of critical materials for the growing EV industry.[1]
Morocco, with its strategic location and abundant mineral resources, has become a critical partner in this scenario. As the country strengthens its role in the EV battery supply chain, it is becoming an attractive hub, especially for Chinese companies looking to produce and export batteries to Europe. However, the China-Africa partnership model faces challenges, such as a change in the global political climate and shifts in trade policies.
China’s presence in the EV battery market is best represented by companies such as Contemporary Amperekh Technologies Limited (CATL). As the world’s largest EV battery manufacturer, CATL plays a critical role in shaping the global battery landscape. Recently, CATL has filed for an IPO in Hong Kong. This IPO is expected to be one of the largest IPOs in Hong Kong in recent years.[2]
However, this presence also has geopolitical implications. As countries such as the US reconsider their trade policies towards Chinese imports, the future of Chinese battery companies, including CATL, could become troubled. These developments, together with the growing presence of Chinese companies in Morocco, could disrupt supply chains. Morocco’s role as a manufacturing and export hub could be affected by political shifts in both the US and China, highlighting the vulnerability of countries in Africa and the Middle East as they pursue economic growth based on Chinese investment.
Beyond the current geopolitical concerns over China’s battery investments in Morocco, there are several other factors affecting the global EV battery market. The most important of these is the expected stabilization of lithium prices in 2025. Lithium is a critical raw material for EV batteries, and its prices have fluctuated significantly in recent years due to increasing EV market demand. As EV sales increase and new mining projects develop, lithium prices are expected to stabilize. This will have a profound impact on the overall cost of EV batteries.
The future of China’s EV battery investments in Morocco depends on the geopolitical situation. As the Trump administration reassesses its policies towards Chinese imports, the broader geopolitical environment is expected to play an increasingly important role in shaping the dynamics of the global EV battery market. Morocco’s position as a key player in this market will depend not only on its ability to attract Chinese investment, but also on Morocco’s ability to increase its competitiveness through technological advancements. In facing these challenges, Morocco’s strategic partnerships with China and growing technological expertise position it as a critical player in the evolving EV battery market. However, the changing uncertainty of political and economic forces will require Morocco to demonstrate adaptability and resilience to succeed in an increasingly complex global market.
Morocco’s rise as a manufacturing hub in the global battery supply chain is a reflection of China’s foreign policy and strategies in Africa. In this process, China’s deepening cooperation with local governments in the region will have long-term effects, such as strengthening Morocco’s industrial infrastructure and making it more productive with an educated workforce. Morocco will not only integrate into China’s strength in the EV battery market, but also increase its technological and industrial competitive advantage. In this context, China’s investments in Morocco can be considered as not only an economic but also a strategic move. However, economic and political uncertainties around the world will determine how Morocco will adapt to these developments and manage its global market share.
[1] “Made in Morocco: how China’s EV battery makers are powering past Western tariffs”, SCMP, https://www.scmp.com/news/china/diplomacy/article/3296891/made-morocco-how-chinas-ev-battery-makers-are-powering-past-western-tariffs, (Access Date: 13.02.2025).
[2] “World’s biggest EV battery maker seeks blockbuster listing in Hong Kong”, CNN, https://edition.cnn.com/2025/02/12/tech/hong-kong-catl-ipo-hnk-intl/index.html, (Access Date: 13.02.2025).
