The leading Chinese manufacturer of materials for battery-powered vehicles Guangzhou Tinci Materials Technology, is set to open a state-of-the-art electric vehicle battery plant in Morocco. This strategic move will support the company’s expansion into the European market while capitalizing on Morocco’s abundant phosphorite ore resources.
Tinci’s Expansion Strengthening the Electric Vehicle Battery Plant in Morocco
With an investment of MAD 2.8 billion ($282,061 million), Tinci’s electric vehicle battery plant in Morocco aims to produce materials that will cater to the European market’s increasing demand. The company recognizes the strategic advantages of building the plant in the North African country, which not only provides ample resources but also enhances Tinci’s ability to serve and explore the European market.
In addition to the plant in Morocco, Tinci Materials Technology is also planning to establish another electric vehicle battery plant in Texas, United States, to cater to the North American markets. This dual expansion strategy reflects Tinci’s commitment to meeting the growing global demand for electric vehicle batteries.
Also Read: Cable Production Plant in Morocco Established by Indian Firm
Tinci’s remarkable growth in the booming electric battery materials market is evident, with sales reaching $3.1 billion in 2022, more than double the previous fiscal year. Furthermore, the company’s net profit grew by approximately 160% to about $789.7 million in 2022, with the majority of the revenue generated from its lithium battery materials division.
It’s noteworthy that Tinci Materials Technology is not the first Chinese company to invest in the manufacture of materials for electric vehicle batteries in Morocco. Yahua Industrial Group, another Chinese group, previously partnered with LG Energy Solution to produce lithium hydroxide at a plant in Morocco. This collaboration strengthened LG Energy Solution’s supply chain for the US market, leveraging the free-trade agreement between Morocco and the United States.
Tinci’s entry into the Moroccan market further solidifies the country’s position as an attractive investment destination for Chinese companies in the electric vehicle battery industry. This expansion not only benefits Tinci by increasing its global market presence but also contributes to the growth of Morocco’s renewable energy sector and strengthens its foothold in the European market.
