RABAT - The Moroccan government gave the green light on Friday for Chinese electric battery maker BTR New Material Group (835185.BJE) to build a factory near Tangier to produce key component cathode.

The plant, to be built at a cost of 3 billion dirhams ($300 million), will have a production capacity of 50,000 tonnes, Morocco’s investment ministry said.

The first output of 25,000 tonnes is expected in September 2026, the ministry said in a statement following the signing of the investment deal with BTR.

Moroccan officials have often pitched the north African country as a good location for EV battery factories because of its existing auto industry and renewable energy sectors, and the presence of raw materials including cobalt and phosphates.

Stellantis (STLAM.MI) owned Citroen has a plant in Kenitra in northwest Morocco with capacity to produce 50,000 supermini electric cars, while Renault and Stellantis-owned Peugeot make combustion-engine cars in Morocco, which is also a base for a cluster of car parts makers