{"id":2289955,"date":"2024-07-06T14:14:01","date_gmt":"2024-07-06T18:14:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinese-firms-eye-morocco-as-way-to-cash-in-on-us-electric-vehicle-subsidies-washington-examiner\/"},"modified":"2024-07-06T14:17:52","modified_gmt":"2024-07-06T18:17:52","slug":"chinese-firms-eye-morocco-as-way-to-cash-in-on-us-electric-vehicle-subsidies-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinese-firms-eye-morocco-as-way-to-cash-in-on-us-electric-vehicle-subsidies-washington-examiner\/","title":{"rendered":"Chinese firms eye Morocco as way to cash in on US electric vehicle subsidies &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">34<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fchinese-firms-eye-morocco-as-way-to-cash-in-on-us-electric-vehicle-subsidies-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2289955&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Chinese \u2062firms are turning to Morocco to take advantage of new subsidies\u200c in the United States \u200dthat aim to boost \u2064electric vehicle production and reduce China&#8217;s dominance \u2062in the supply \u200bchain. Eight\u200d Chinese battery makers have\u2064 announced\u200c investments in Morocco since President Joe Biden signed \u2063the Inflation\u2062 Reduction Act, a $430 billion law\u2063 to fight climate change. These investments aim to capitalize on increasing demand\u2064 from American carmakers like Tesla and General Motors.\u200c Moroccan industrial parks are now home to American, European, \u200band Chinese component makers, hoping to meet growing demand and comply\u200d with U.S.\u200c regulations. Despite concerns about anti-competitive\u2063 policies, Morocco has \u200dbecome a hub for electric vehicle manufacturing as countries compete for market share. However, the influx of Chinese investment has raised alarms \u200din Washington, with some lawmakers criticizing \u200cAmerican subsidies benefiting Chinese firms. The U.S. Energy and Treasury\u2062 departments are working to balance reducing \u200breliance on Chinese manufacturers while ensuring enough vehicles qualify for the credits under the\u200d Inflation Reduction Act.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><br \/>\n<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><a class=\"tdb-logo-a\" href=\"https:\/\/www.washingtonexaminer.com\/\" title=\"Washington Examiner\"><span class=\"tdb-logo-img-wrap\"><\/span><span class=\"tdb-logo-text-wrap\"><span class=\"tdb-logo-text-title\">Washington Examiner<\/span><\/span><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\">\n<div class=\"tdb-search-form-inner\"><input class=\"tdb-head-search-form-input\" placeholder=\" \" type=\"text\" value name=\"s\" autocomplete=\"off\"><button class=\"wpb_button wpb_btn-inverse btn tdb-head-search-form-btn\" title=\"Search\" type=\"submit\"><span>Search<\/span><\/button><\/div>\n<\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><a class=\"tdb-logo-a\" href=\"https:\/\/www.washingtonexaminer.com\/\" title=\"Washington Examiner\"><span class=\"tdb-logo-img-wrap\"><\/span><span class=\"tdb-logo-text-wrap\"><span class=\"tdb-logo-text-title\">Washington Examiner<\/span><\/span><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Chinese firms eye Morocco as way to cash in on US electric vehicle subsidies<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-author-name-wrap\"><span class=\"tdb-author-by\">By<\/span> <a class=\"tdb-author-name\" href=\"https:\/\/www.washingtonexaminer.com\/author\/associated-press\/\">Associated Press<\/a><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><time class=\"entry-date updated td-module-date\" datetime=\"2024-07-06T14:13:14-04:00\">July 6, 2024 2:13 pm<\/time><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1696133\" class=\"tpd-featured-video bridtv\"><\/div>\n<p><strong>TANGIERS, Morocco (AP) \u2014<\/strong> After the <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/United-States\/\" target=\"_blank\" rel=\"noopener\" title>United States<\/a> passed new subsidies designed to boost domestic electric vehicle production and cut into Beijing\u2019s supply chain dominance, Chinese manufacturers began investing in an unlikely place: Morocco.<\/p>\n<p>In the rolling hills near Tangiers and in industrial parks near the <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/water\/\" target=\"_blank\" rel=\"noopener\" title>Atlantic Ocean<\/a>, they have announced plans for new factories to make parts for EVs that may qualify for $7,500 credits to car buyers in the United States.<\/p>\n<p>Similar investments have been announced in other countries that share free trade agreements with the United States, including South Korea and Mexico.<\/p>\n<p>But few countries have seen the kind of boom that Morocco has.<\/p>\n<p>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 $430 billion U.S. law designed to fight climate change, according to an <em>Associated Press<\/em> tally.<\/p>\n<p>By moving operations to U.S. trading partners like Morocco, Chinese players that have long dominated the battery supply chain are seeking a pathway to cash in on increasing demand from American carmakers like Tesla and General Motors, said Kevin Shang, a senior battery analyst at the consulting firm Wood Mackenzie.<\/p>\n<p>\u201cChinese companies definitely don\u2019t want to miss this big party,\u201d he said.<\/p>\n<p>The United States and European Union have both <a href=\"https:\/\/apnews.com\/article\/china-electric-vehicles-imports-3d1f4ef984b18bb6e86274e65bcfdf2e\" target=\"_blank\" rel=\"noopener\" title>imposed major new tariffs<\/a> on Chinese vehicle imports since May. The United States also <a href=\"https:\/\/apnews.com\/article\/electric-vehicle-tax-credit-treasury-government-bcbbc0fd7eac8b970d419260c8ed577b\" target=\"_blank\" rel=\"noopener\" title>finalized eligibility rules governing the tax credits<\/a> in May. The latter limit companies with ties to U.S. adversaries, but give carmakers time to reduce their reliance on China. To qualify for the subsidies, carmakers cannot source critical minerals or battery parts from manufacturers in which China and other \u201cforeign entities of concern\u201d control more than 25% of the company or its board.<\/p>\n<p>Critics say the rules are a giveaway to China and will extend its EV dominance. The Biden administration says the rules pave the way for billions in investment in EV manufacturing in the United States.<\/p>\n<h2 class=\"wp-block-heading\">Between East and West<\/h2>\n<p>In Morocco, a largely agrarian economy where the median income is $2,150 a month, giant industrial parks full of American, European and Chinese component makers have sprung up in the rural outskirts of Tangiers, Kenitra and El Jadida.<\/p>\n<p>Expanding on infrastructure that has made Morocco a <a href=\"https:\/\/apnews.com\/article\/morocco-automobile-industry-electric-vehicles-2981a049578c411b95b525752d243f93\" target=\"_blank\" rel=\"noopener\" title>car manufacturing hub<\/a>, they hope to meet growing demand and overcome rules designed to exclude them from the incentives the Inflation Reduction Act is injecting into the U.S. car market, the world\u2019s second-largest.<\/p>\n<p>The rules \u201chave led Chinese producers to increase investment in countries with whom the US has free trade agreements, namely South Korea and Morocco, to get past some IRA barriers,\u201d the policy research firm Rhodium Group said in a report earlier this year.<\/p>\n<p>Some of the new China investments in Morocco explicitly cite the new U.S. subsidies as a reason.<\/p>\n<p>Many are joint ventures that have cited their ability to tinker with board seats and governance to comply with U.S. rules.<\/p>\n<p>That includes CNGR, one of China\u2019s largest battery cathode producers, which in September announced a $2 billion plan to build what it called a \u201cbase in the world and pan-Atlantic region\u201d in a joint venture with the Moroccan royal family\u2019s investment group, Al Mada.<\/p>\n<p>Though CNGR owns slightly more than a 50% stake in the project, Thorsten Lahrs, CEO of its Europe division, said he\u2019s confident its cathodes can qualify for the tax credits and change its board composition if necessary. If not, the company would pivot to other markets, including <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/Europe\/\" target=\"_blank\" rel=\"noopener\" title>Europe<\/a>, which just hiked tariffs on electric vehicles imported from China.<\/p>\n<p>\u201cTo ride the wave of the IRA, you have to execute fast and comply with its regulations,\u201d he said in an interview before the U.S. finalized its rules. \u201cWe have flexibility to be able to comply with all the changes in interpretation or rules.\u201d<\/p>\n<p>The Chinese battery projects include at least three joint ventures and several that reference Morocco\u2019s trade ties with the United States.<\/p>\n<p>The largest among them is Chinese-German battery-maker Gotion High-Tech, which signed a deal with Morocco last year for $6.4 billion investment to construct Africa\u2019s first <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ford-to-invest-700-million-add-500-jobs-at-louisville-truck-plant\/\" title=\"Ford to Invest 0 Million, Add 500 Jobs at Louisville Truck Plant\">electric vehicle battery factory<\/a>.<\/p>\n<p>Investments also include Youshan, a joint venture backed by Korean giant LG Chem and China\u2019s Huayou Cobalt. It declined to provide details about the size of their investment but said the <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/Morocco\/\" target=\"_blank\" rel=\"noopener\" title>Morocco<\/a> base means their cathodes \u201cwill be supplied to the North American market and subsidized by the U.S. Inflation Reduction Act as Morocco is a signatory to the U.S. Free Trade Agreement.\u201d<\/p>\n<p>LG Chem said the venture would adjust ownership shares as necessary to comply with U.S. rules.<\/p>\n<p>China\u2019s BTR Group\u2019s announcement of a cathode factory in April noted that Morocco\u2019s trade status with the United States and Europe would ensure \u201ca seamless entry for the majority of its manufactured products into these regions.\u201d<\/p>\n<p>Abdelmonim Amachraa, a supply chain expert who previously worked in Morocco\u2019s Ministry of Industry and Trade, said Morocco was profiting from its \u201cability to coexist when a link can\u2019t be found between China and the United States.\u201d<\/p>\n<p>Officials in Morocco have publicly and privately worked to foster ties up and down the automotive supply chain in both the East and the West. The country hosts more than 250 companies that manufacture cars or their components, including Stellantis and Renault as well as Chinese, Japanese, American and Korean factories that make seats, engines, shock absorbers and wheels. The industry exports almost $14 billion in cars and parts annually.<\/p>\n<p>As the world transitions to electric vehicles, Morocco may appear to be a surprising beneficiary as China, the United States and Europe compete for market share. But its officials worry that anti-competitive policies like tariffs and subsidies could ultimately make it more difficult to lure investment.<\/p>\n<p>Ryad Mezzour, the country\u2019s minister of industry and trade, said in an interview that all the new investment doesn\u2019t tell the full story. Morocco has also lost out on some projects due to what he called \u201ca new age of protectionism.\u201d<\/p>\n<h2 class=\"wp-block-heading\">A giant loophole<\/h2>\n<p>The investment has been a boon to countries like Morocco. But in Washington, Chinese firms have raised alarm by angling to access the American subsidies.<\/p>\n<p>\u201cUnder the Biden administration\u2019s electric vehicle regulations, America\u2019s working families will have to watch their <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/watch-democrat-congressman-uses-national-guard-in-apparent-political-stunt-against-gop-member\/\" title=\"WATCH: Democrat Congressman Uses National Guard In Apparent \u2018Political Stunt\u2019 Against GOP Member\">hard-earned tax dollars<\/a> go to line the pockets of Chinese billionaires and businesses with links to the Chinese Communist Party,\u201d U.S. Rep. Jason Smith, a <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/Missouri\" target=\"_blank\" rel=\"noopener\" title>Missouri<\/a> Republican, said of the new guidelines.<\/p>\n<p>But at issue are the complexities of both the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/infrastructure-law-hints-at-chinas-role-in-bidens-push-for-electric-vehicles-could-threaten-american-jobs\/\" title=\"\u2018Infrastructure\u2019 Law Hints at China\u2019s Role in Biden\u2019s Push for Electric Vehicles, Could Threaten American Jobs\u00a0\">electric vehicle supply chain<\/a> and the Inflation Reduction Act, which seeks to grow adoption of EVs and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-passes-enormous-china-competitiveness-bill-but-it-faces-huge-roadblocks-in-the-senate\/\" title=\"House Passes Enormous China Competitiveness Bill, But It Faces Huge Roadblocks In The Senate\">boost domestic manufacturing<\/a>, too.<\/p>\n<p>The U.S. Energy and Treasury departments have tried to strike a delicate balance, working to reduce reliance on Chinese manufacturers while also ensuring enough vehicles qualify for the credits. The Department of Energy did not respond to questions about what its rules meant for Chinese investments in countries that share free trade agreements with the United States. But in a statement, a spokesperson called the transition to electric vehicles \u201can industry-wide, global trend\u201d and said new policies \u201chelp the US strengthen its energy security and competitiveness \u2014 including outcompeting China.\u201d<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/strong><\/p>\n<p>China has spent years subsidizing companies that extract critical battery minerals, manufacturers of cathodes, anodes and electrolyzers and carmakers like BYD. Those companies\u2019 eagerness to invest in Morocco to cash in on the Inflation Reduction Act shows how decoupling Chinese manufacturers from the supply chain will take years, if not decades, said Chris Berry, an adviser to battery companies and investors.<\/p>\n<p>\u201cThere is not going to be a lithium ion battery supply chain that does not have Chinese influence for a long time,\u201d Berry said.<\/p>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1696133\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1696133\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><a class=\"tdb-logo-a\" href=\"https:\/\/www.washingtonexaminer.com\/\" title=\"Washington Examiner\"><span class=\"tdb-logo-img-wrap\"><\/span><span class=\"tdb-logo-text-wrap\"><span class=\"tdb-logo-text-title\">Washington Examiner<\/span><\/span><\/a><\/div>\n<p><\/body><\/html><\/p>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chinese companies are looking to take advantage of US electric vehicle subsidies by investing in Morocco, following the passing of new subsidies in the United States. This move allows Chinese manufacturers to benefit from the incentives offered to car buyers in the US, as well as navigate around restrictions on sourcing materials from China. The investments in Morocco are part of a larger trend of Chinese companies seeking to capitalize on the growing demand for electric vehicles in the US market<\/p>\n","protected":false},"author":2634,"featured_media":2289956,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/07\/Car-1024x683.webp","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[34087,33451,13431,34088,32076],"class_list":["post-2289955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-chinese-firms","tag-electric-vehicles","tag-morocco","tag-us-subsidies","tag-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/07\/Car-1024x683.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2289955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2634"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2289955"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2289955\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2289956"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2289955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2289955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2289955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}