Boosting Morocco's cathode production, Chinese firms invest $700 million

According to a London-based IOSCO-regulated Price Reporting Agency and specialist information provider for the lithium-ion battery to electric vehicle supply chain, Morocco is set to strengthen its global standing as a cathode producer, as Chinese companies plan to invest over $700 million in the sector.

The report further emphasised that Morocco's expected production capacity is poised to cover about a quarter of Europe's forecasted requirements. The document highlights various projects, with one notable example being China's BTR committing a substantial $490 million investment in a facility disclosed in December 2023.

The future hotspot for Moroccan tech

Situated in Tangier Technopark City within the Tangier Province, the recently established facility is poised to manufacture an impressive annual output of 50,000 tonnes of cathode for lithium-ion batteries. BTR, a subsidiary of China Bao'an Group and a key supplier for the renowned tech company Tesla, manages operations at the plant.

The substantial increase in Morocco's cathode production capacity can be attributed to a surge in investments during 2023, fuelled by a notable influx of Chinese investments from prominent companies such as Huayou Cobalt, CNGR, and Tinci.

In December 2023, the North African nation inked a significant protocol of agreement with Guchen Hi-Tech, a conglomerate bridging Sino-European interests in electric mobility, involving substantial investments amounting to MAD 65 billion dirhams (equivalent to $6.4 billion).

The report elucidates that Morocco's appeal to foreign investors stems from various factors, notably its free trade ties with both the United States and Europe. The strategic positioning of the country, coupled with its trade agreements with the EU and US, positions it as an optimal destination for Chinese investors seeking to access these two lucrative markets.

Furthermore, Morocco possesses extensive natural resources essential to the cathode industry, with its substantial phosphate reserves being of particular significance. Phosphate, a vital element in producing lithium iron phosphate (LFP) cathodes, is crucial in the evolving industrial sector.

Morocco boasts phosphate reserves reaching 50 billion tonnes, making up 71 per cent of the global total.

About BTR

BTR New Material Group, founded in August 2000, operates as a subsidiary of China Baoan Group Co. Ltd., specialising in producing cathode and anode materials for lithium-ion batteries; BTR is a dedicated manufacturer in this field.

Cathode usage in aluminium production

Carbon and graphite cathode blocks play a crucial role in the lower section of aluminium electrolysis cells, facilitating the transfer of electrical current for the reduction of aluminium oxide to aluminium metal within a molten cryolite electrolyte.

How is aluminium used in lithium-ion batteries

Portable power has been made feasible through the widespread adoption of lithium-ion batteries, which are now prevalent in our homes and offices and increasingly replacing internal combustion engines in vehicles. These batteries are favoured for their high capacity, efficiency, versatility, and safety features, contributing to the projected growth of the global lithium-ion battery industry, which is projected to reach a value of $91 billion (USD) by 2030. It's essential to acknowledge that aluminium plays a crucial role in enabling the power capabilities of lithium-ion batteries.

Aluminium sulfate is present in the positive terminal of batteries, commonly called the cathode. The cathode uses metal oxide, such as cobalt peroxide, to gather positively charged lithium ions. Cobalt, on its own, lacks efficiency in collecting and distributing lithium ions, so it is applied as a coating on conductive aluminium sheets. The aluminium serves as a current collector and facilitates using positive tabs for charging. The aluminium-coated metal oxide sheet is one of three sheets wound onto a central core to create a cylindrical structure, as observed in electric vehicles, or it can be folded to fit into mobile phones.