Why China is banking on Morocco for its electric battery factories

Many Chinese companies intend to invest nearly 10 billion euros in the manufacture of electric batteries and their components in Morocco. A choice that can be explained by several factors.

“To gain access to the American and European markets and circumvent provisions aimed at excluding their products.” This is, according to researcher Kyle Chan of Princeton University, the objective pursued by large Chinese companies rushing towards Morocco. To support his argument, he mentions the Inflation Reduction Act, an ecological reform plan adopted by the American Senate in 2022. “It offers tax credits for batteries manufactured from components from countries with which the United States has concluded a free trade agreement, which includes Morocco,” explains this specialist in Chinese industrial policy.