Chinese firms eye Morocco to cash in on US electric vehicle subsidies
After the United States passed new subsidies designed to boost domestic electric vehicle production and cut into Beijing's supply chain dominance, Chinese manufacturers began investing in an unlikely place: Morocco.
In the rolling hills near Tangiers and in industrial parks near the Atlantic Ocean, they have announced plans for new factories to make parts for EVs that may qualify for USD 7,500 credits to car buyers in the United States.
Similar investments have been announced in other countries that share free trade agreements with the United States, including South Korea and Mexico.
But few countries have seen the kind of boom that Morocco has.
At least eight Chinese battery makers have announced new investments in the North African kingdom since President Joe Biden signed the Inflation Reduction Act, the USD 430 billion US law designed to fight climate change, according to an Associated Press tally.
By moving operations to US trading partners like Morocco, Chinese players that h