Chinese companies are avoiding or delaying direct investments in the US and Europe because of geopolitics and lengthy waits for permits, one of the world’s largest battery material producers has warned after announcing a $2 billion investment in Morocco, reports the Financial Times. China’s CNGR Advanced Material said last week that it would build a cathode materials plant in Morocco to supply the US and European battery markets, as the north African country emerged as an unlikely winner from US-China tensions.
Thorsten Lahrs, chief executive of CNGR Europe, told the Financial Times that Morocco hit a “sweet spot” for Chinese producers wanting to serve the US and Europe.
He said plants could be built quicker in the north African country than in the target markets, which had lengthy permitting processes, and that they were a less risky investment prospect because they could switch to exporting elsewhere should the US or Europe introduce new protectionist policies.
