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China’s Hailiang, Shinzoom to Build Auto Battery Plants in Morocco 

The Mohammed VI Tower in Rabat. (AFP)
The Mohammed VI Tower in Rabat. (AFP)
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China’s Hailiang, Shinzoom to Build Auto Battery Plants in Morocco 

The Mohammed VI Tower in Rabat. (AFP)
The Mohammed VI Tower in Rabat. (AFP)

Chinese auto battery manufacturers Hailiang and Shinzoom will set up two separate plants in Morocco, as the country seeks to adapt its growing automotive sector to increasing demand for electric vehicles, Moroccan officials said on Tuesday.

Authorities in charge of developing the Moroccan northern industrial zone, Tanger Tech, said Hailiang plans to build a copper plant worth $450 million on an area of 30 hectares.

Shinzoom, part of Hunan Zhongke, will invest $460 million in an anodes plant spanning over 20 hectares, they said in a statement.

In April, the Moroccan government gave the green light for Chinese electric battery maker BTR New Material Group to build a factory near Tangier to produce key component cathodes.

Another Chinese manufacturer, CNGR Advanced Material, is expected to build a cathode plant in Jorf Lasfar, 100 kilometers south of Casablanca, where the government has allocated 283 hectares to electric battery industries.

Last year, the Moroccan government and China's Gotion agreed to look into setting up an electric vehicle battery plant in the kingdom with up to $6.3 billion in eventual investment.

Industry minister Ryad Mezzour told Reuters last month the Gotion project was advancing with discussions on the footprint and location.

Chinese firms are lured by Morocco's geographic location on the Strait of Gibraltar, its free trade agreements with key EU and US markets and its existing automotive industry cluster.

The automotive sector topped Morocco's industrial exports at $14 billion in 2023, up 27%.

Morocco is home to production plants by Stellantis and Renault with an annual combined production capacity of 700,000 cars as well as a cluster of local suppliers.

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US Solar Tariffs Could Drive Asia Transition Boom

Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)
Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)
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US Solar Tariffs Could Drive Asia Transition Boom

Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)
Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)

Massive planned US duties on solar panels made in Southeast Asia could be a chance for the region to ramp up its own long-stalled energy transition, experts say.
Earlier this month, Washington announced plans for hefty duties on solar panels made in Cambodia, Vietnam, Thailand and Malaysia.
The levies follow an investigation, launched before US President Donald Trump took office, into "unfair practices" in the countries, particularly by Chinese-headquartered firms, AFP said.
If approved next month, they will pile upon tariffs already imposed by the Trump administration, including blanket 10-percent levies for most countries, and 145 percent on Chinese-made goods.
For the US market, the consequences are likely to be severe. China makes eight out of every 10 solar panels globally, and controls 80 percent of every stage of the manufacturing process.
The new tariffs "will practically make solar exports to US impossible commercially", said Putra Adhiguna, managing director at the Energy Shift Institute think tank.
Southeast Asia accounted for nearly 80 percent of US solar panel imports in 2024.
And while investment in solar production has ramped up in the United States in recent years, the market still relies heavily on imported components.
For Chinese manufacturers, already dealing with a saturated domestic market, the raft of tariffs is potentially very bad news.
Many shifted operations to Southeast Asia hoping to avoid punitive measures imposed by Washington and the European Union as they try to protect and nurture domestic solar industries.
The proposed new duties range from around 40 percent for some Malaysian exports to an eye-watering 3,521 percent for some Cambodia-based manufacturers.
- Tariffs 'accelerate' transition -
But there may be a silver lining for the region, explained Ben McCarron, managing director at Asia Research & Engagement.
"The tariffs and trade war are likely to accelerate the energy transition in Southeast Asia," he said.
China will "supercharge efforts" in regional markets and push for policy and implementation plans to "enable fast adoption of green energy across the region", driven by its exporters.
Analysts have long warned that countries in the region are moving too slowly to transition from planet-warming fossil fuels like coal.
"At the current pace, it (Southeast Asia) risks missing out on the opportunities provided by the declining costs of wind and solar, now cheaper than fossil fuels," said energy think tank Ember in a report last year.
For example, Malaysia relied on fossil fuels for over 80 percent of its electricity generation last year.
It aims to generate 24 percent from renewables by 2030, a target that has been criticized as out of step with global climate goals.
The tariff regime represents a double opportunity for the region, explained Muyi Yang, senior energy analyst at Ember.
So far, the local solar industry has been "largely opportunistic, focused on leveraging domestic resources or labor advantages for export gains", he told AFP.
Cut off from the US market, it could instead focus on local energy transitions, speeding green energy uptake locally and driving a new market that "could serve as a natural hedge against external volatility".
Still, replacing the US market will not be easy, given its size and the relatively nascent state of renewables in the region.
"Success hinges on turning this export-led momentum into a homegrown cleantech revolution," said Yang.
"Clearance prices" may be attractive to some, but countries in the region and beyond may also be cautious about a flood of solar, said Adhiguna.
Major markets like Indonesia and India already have measures in place intended to favor domestic solar production.
"Many will hesitate to import massively, prioritizing trade balance and aims to create local green jobs," he said.