Yahua Industrial Group and LG Energy Solution signed an agreement in April to produce lithium hydroxide in Morocco.
Rabat – Guangzhou Tinci Materials Technology, one of the main Chinese manufacturers of materials for electric vehicle batteries, will open a plant in Morocco, as announced by the Chinese media Yicai Global.
The construction of this future unit requires an investment of 2,800 million MAD (282,061 million dollars).
The materials that this plant will produce will be used to supply the European market.
«Morocco has extensive phosphorite mineral resources. Building a plant in the North African country will also help the company better serve and explore the European market,” Tinci said.
The company plans to open another plant in the United States, in the state of Texas, with the aim of supplying the North American markets.
With an annual production capacity of 200,000 tons, this lithium battery electrolyte plant is expected to be operational within thirty months.
Guangzhou Tinci Materials Technology is experiencing dramatic growth in the booming electric battery materials market. The group achieved sales of $3.1 billion in 2022, more than double that of fiscal 2021.
Likewise, its net profit increased by around 160% reaching approximately $789.7 million in 2022. 93% of the total revenue came from its lithium battery materials division.
However, Guangzhou Tinci Materials Technology is not the first Chinese group to invest in the manufacturing of materials for electric vehicle batteries in Morocco.
Last April, compatriot Yahua Industrial Group signed a deal with Korea's LG Energy Solution (LGES), the world's second-largest maker of electric vehicle batteries, to produce lithium hydroxide at a plant in Morocco.
This joint venture will allow LGES to strengthen its supply chain for this material to serve the US market, a country connected by a free trade agreement with Morocco.