Chinese companies have announced plans for new factories in Morocco to make EV parts that may qualify for $7,500 credits for carbuyers in the US, according to a report by Associated Press, which said at least eight Chinese battery makers had announced investments in the North African nation since the Biden Administration passed its Inflation Reduction Act to counter climate change.
Rules in the US law have led to increased Chinese investment in joint ventures with local firms in countries that have free-trade agreements with the US, such as South Korea and Morocco, to get past those limitations, the report said, noting that the Chinese-German battery-maker Gotion High-Tech signed a deal with Morocco in 2023 to invest $6.4 billion construct Africa’s first EV battery factory.
Morocco has more than 250 companies that make cars or car parts such as seats, engines and wheels and it exports $14 billion worth of these items annually, it said, but experts believe it could take a long time to eliminate Chinese firms from the EV supply chain.
Read the full report: AP.
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