Major Investment in Morocco
BTR New Material Group, part of China Baoan Group, is set to invest a significant amount, approximately USD 497 million, to establish a new lithium battery cathode material factory in Morocco. This venture marks a substantial move by the Shenzhen-based company in expanding its global footprint in the new energy materials sector.
Factory Specifications and Operations
The proposed Moroccan plant boasts an impressive annual production capacity of 50,000 tons of cathode materials, crucial for lithium-ion batteries. BTR will oversee the investment and construction, while the operations will be managed by a project company formed in Morocco by BNUO International Holding, a subsidiary of BTR.
Strategic Location in Morocco
Morocco presents a strategic choice for the plant, given its comprehensive industry chain for lithium-ion raw materials, including notable reserves of cobalt and phosphate. The North African country holds a dominant share of the world’s phosphate reserves, a critical component for battery production.
Chinese Industry Expansion Amidst Domestic Competition
This development comes as several Chinese lithium-ion battery manufacturers are seeking to expand globally in response to intense competition within China. Gotion High-Tech, for example, recently announced plans to establish a large battery production facility in Morocco. This trend is partly driven by the need to optimize capacity utilization rates, which have been a challenge for many companies in the sector.
Capacity Utilization Challenges
Contemporary Amperex Technology (CATL), the world’s largest battery maker, reported a significant drop in capacity utilization rate in the first half of the year. This issue is also evident among battery materials manufacturers, with larger firms maintaining better rates than their smaller counterparts.
BTR’s Production Capacity and Utilization
BTR itself has substantial production capacities for pseudo-anode and cathode materials. The company reported that its capacity utilization rates for these materials exceeded 70% in the first three quarters of the year, showcasing its operational efficiency amidst industry challenges. 
