TLG - Media, page-14399

China just keeps growing outside it's area trying to diversify its Critical Mineral Supplies.

Happy Friday!

Morocco is set to become a key cathode producer following over $700 million of announced investments by Chinese companies in the country.

Total planned capacity is already around a quarter of Europe’s total forecast capacity, after China’s BTR announced a RMB 3.5 billion ($497 million) investment into a new facility last month.

Almost all of Morocco’s cathode capacity was added last year when a surge of Chinese investments from the likes of Huayou Cobalt, CNGR and Tinci were announced.

One of the biggest factors attracting the foreign investment are Morocco’s free trade ties to the US and Europe, making it an ideal operational base for Chinese companies looking to enter these markets.

In addition, Morocco’s natural resources have also been a major factor in attracting foreign investment, including its reserves of phosphate - a mineral used to make lithium iron phosphate (LFP) cathodes.

Elsewhere, China dominates production of high purity manganese used in batteries but 2023 saw significant investment into the supply chain outside the country for the first time.

GM lent Australia’s Element 25 $85 million for a high-purity manganese sulphate processing facility in Louisiana and Vibrantz Technologies announced plans for a pilot plant in Mexico.

2023 also saw progress for solid-state battery commercialisation as US startup Solid Power became the first Western producer of the next-generation battery to begin the automotive qualification process for passenger EVs.

Finally, in Chile, last month SQM and state-owned copper miner Codelco agreed to form a partnership to produce lithium. It follows on from Chilean president **riel Boric’s April 2023 plan to part-nationalise the lithium industry.

Through its plan, the Boric government aims for greater control over its critical mineral resources. Yet Chile's share of global supply is due to fall dramatically over this decade and the country will have to attract more private investors to compete with countries like Argentina, which is set to bring new capacity online more quickly.

On top of this weekly newsletter on Friday, Benchmark will launch a biweekly dedicated policy newsletter next Monday covering policy and geopolitical developments impacting the EV battery supply chain.

Have a good weekend,