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China sets sights on Morocco as North African nation becomes centre of EV revolution

  • Morocco’s proximity to Europe, abundance of critical minerals and tax incentives have put it at the heart of the electric vehicle sector
  • As part of the global trend of nearshoring, Chinese companies are now lining up to shorten supply chains in the North African country

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A Science and Technology City coming up just outside Tangier, Morocco, is expected to host companies from around the world, with Chinese electric vehicle manufacturers clamouring for a spot. Photo: Corbis

Just outside the Moroccan city of Tangier, a Chinese-backed manufacturing and technology hub is finally taking shape after six years of delays.

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The Mohammed VI Tangier Science and Technology City lies just 27km (16.8 miles) from the southern tip of the Spanish coast across the Strait of Gibraltar, strategically positioned where Africa faces Europe at the intersection of the Atlantic Ocean and the Mediterranean Sea.

First proposed in 2016 when Morocco’s King Mohammed VI met Chinese President Xi Jinping in Beijing, the US$1 billion tech city is eventually expected to host around 200 Chinese companies, all clamouring to gain easy access to Europe and Africa as part of China’s multibillion-dollar Belt and Road Initiative.

After the initial Chinese sponsor – aviation giant Haite Group – withdrew in 2021 over issues concerning the project scale and ownership of the city, the plan finally got off the ground last year following a Moroccan government deal with other China-based firms.

Chinese ambassador to Morocco Li Changlin said the project – “which the two heads of state are jointly concerned about” – had made “significant progress” and was “[now] ready to receive investment from China and other countries”.

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“China is expected to become a key participant in Morocco’s electric vehicle industry and contribute to Morocco’s industrialisation process,” Li wrote in an article on November 1 marking the 65th anniversary of bilateral diplomatic relations.

Observers said Morocco’s proximity to Europe, abundance of critical minerals, tax incentives and free-trade agreements with both the EU and the US had attracted a growing number of Chinese companies to build supply chains there, so as to strengthen China’s leadership in the EV sector.
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