Chinese Battery Expands into Africa... Establishes Factory in Morocco

Guo Xuan High-Tech, Battery Factory in Africa

Chinese companies are accelerating the expansion of the lithium battery industry chain to the African continent.

According to China's Pengpai News on the 4th, Guoxuan High-Tech, a battery manufacturer headquartered in Hefei, Anhui Province, plans to establish an electric vehicle battery factory in Morocco, North Africa. The total investment is expected to be $6.3 billion (approximately 8.2536 trillion KRW), with an annual production capacity projected at around 100 GWh. Once the factory is completed, Guoxuan High-Tech will become the first Chinese lithium battery company to build a battery factory on the African continent.

A representative from Guoxuan High-Tech told the media, "Both the company and the Moroccan government are committed to building a battery factory locally," adding, "We are continuously communicating." Regarding the choice of Morocco, they explained, "It was considered as part of our strategy to enter non-European markets."

Earlier, major Western media reported on Guoxuan High-Tech's plan to build a factory in Morocco, noting that Morocco currently has automotive and renewable energy industries and has formed a raw material industry chain including cobalt and phosphates. Moroccan authorities have also stated through the media that "Morocco is the optimal region for establishing large-scale electric vehicle battery factories."

Currently, Renault and Stellantis have factories in Morocco, with the production capacity of related factories known to be around 700,000 units annually. Additionally, Pengpai News analyzed that Morocco has an ecosystem for complete vehicle manufacturing, with more than 250 automobile manufacturers and parts manufacturers. Last year, the automotive industry ranked first in Morocco's industrial exports with export volume of 111 billion dirhams (approximately 39.5881 trillion KRW), a 33% increase compared to the previous year.

Guoxuan High-Tech also announced last year that it would build a battery material factory in Michigan, USA, and is currently in the land acquisition phase. Prior to this, it acquired Bosch Group's G?ttingen factory in Germany and is reportedly beginning localization efforts there.

Meanwhile, at the end of last month, Felix Tshisekedi, President of Congo, made a state visit to China. Congo is a representative lithium-rich country in Africa. According to the China Nonferrous Metals Industry Association, Africa's total lithium resource amount is 25.75 million tons LCE (Lithium Carbonate Equivalent), with confirmed reserves reaching 4.94 million tons. Among these, Congo's confirmed reserves are 3 million tons, accounting for 69.1% of Africa's total. Lithium is mainly distributed in five African countries: Congo, Mali, Zimbabwe, Ghana, and Namibia. Since early this year, Chinese lithium battery companies have been continuously acquiring mines in Africa.