Chinese Investments in Morocco: Tangier Tech at the Center of New Industrial Tensions with the EU
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The Rise of Chinese Investment in Strategic Segments of Electric Mobility
The surge in Chinese investments in strategic segments of electric mobility places the Tanger-Tétouan-Al Hoceïma region at the heart of new industrial realignments among Morocco, China, and the European Union. While these projects accelerate the upgrading of the regional automotive ecosystem, they also fuel European discussions on rules of origin, supply chain security, and the trust granted to industrial partners.
A Chinese Presence Transforming the Industrial Ecosystem
In its Surveillance Alert No. 54, the Regional Observatory for Strategic Monitoring and Territorial Intelligence (ORVSIT) highlights that Tanger Tech now hosts nearly a dozen Chinese companies specializing in technologies related to electric vehicles.
Among these are BTR New Material Group, Sentury Tire, and APG, which operate in battery materials, tires, and smart automotive equipment, respectively. Their establishment contributes to diversifying the regional industry and strengthening its position in high-value-added segments.
However, the observatory notes that this dynamic occurs as the European Union seeks, through its Industrial Accelerator Act, to reduce its dependence on China-dominated value chains in the electric vehicle sector.
BTR Invests 6 Billion Dirhams in Battery Materials
The most significant project involves BTR New Material Group, which is developing two production units for cathode and anode materials for electric batteries in Tanger Tech.
The announced investment reaches 6 billion dirhams, creating more than 1,150 direct jobs. The first unit is expected to ultimately produce 50,000 tons of materials annually, further positioning the region at the upstream stages of the battery value chain.
Meanwhile, Sentury Tire plans an estimated investment of $490 million for an annual capacity of 12 million tires, while APG is investing about $70 million to set up its first factory outside of China in Tanger.
An Already Strongly Developed Automotive Ecosystem
These new investments complement an already dense industrial fabric around Tangier Med, which hosts over 150 automotive suppliers and generates more than 40,000 direct jobs.
According to ORVSIT, this evolution gradually allows the territory to surpass its traditional role in automotive assembly to integrate more technological activities, notably battery materials, advanced braking systems, and smart equipment.
However, the benefits will largely depend on the actual level of local integration, reliance on Moroccan suppliers, technology transfer, and the development of research and development activities.
Europe Strengthens Vigilance on Supply Chains
The report emphasizes that China maintains a dominant position across the entire battery value chain.
By 2025, it accounted for over 80% of global battery cell production, around 85% of cathode materials, more than 90% of anode materials, and nearly 70% of the refining of critical minerals.
In this context, the European Union aims to secure its supplies and may progressively strengthen controls regarding the origin of components, their traceability, and the local content requirement for products destined for the European market.
Morocco Retains a Favorable Status, but Under Surveillance
ORVSIT notes that Morocco currently enjoys equivalent treatment under its association agreement with the European Union.
Furthermore, the prudence displayed by Rabat regarding the Chinese proposal for a free trade agreement presented in June 2026 is seen as a signal to preserve the trust of European partners and to avoid the perception of the Kingdom as merely a platform to circumvent rules of origin.
The report also clarifies that this favorable status is not definitively secure, with the European Union potentially revising this treatment if it deems that industrial integration increases its dependency or threatens its supply security.
A Matter of Industrial Credibility
According to the observatory, the critical question is not the nationality of the investors but rather Morocco’s capacity to demonstrate that the industrial transformation occurring in its territory is substantial.
The share of locally manufactured components, reliance on Moroccan suppliers, the creation of skilled jobs, the development of research and development, and the traceability of supply chains will all be criteria likely to influence the decisions of European industries.
The report also warns of potential tensions in the regional employment market, as the proliferation of new projects may intensify competition for skilled labor and lead to higher employee turnover rates.
Recommendations to Strengthen European Trust
To maintain regional competitiveness, ORVSIT recommends documenting the locally created added value more thoroughly, enhancing investor commitments in industrial integration, training, technology transfer, and research, while continuing to diversify investments by attracting European, Japanese, Korean, and North American groups.
According to the observatory, the period leading up to the implementation of new European local content requirements in 2029 represents a strategic window to solidify the region’s position as a reliable industrial partner within Euro-Mediterranean value chains.
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