Morocco’s ambitions to become a major player in the electric vehicle battery supply chain are facing headwinds, as evidenced by the financial struggles of Cobco, a key joint venture in the nation’s developing gigafactory ecosystem. The company is now relying on a $70 million loan from its shareholders-Chinese firm CNGR and Morocco’s royal holding company Al mada-to stay afloat amid mounting losses and an uncertain industrial climate. This short-term financing, detailed in a recent securities filing, underscores the challenges facing the sector as Morocco seeks to attract foreign investment and establish itself as a hub for battery production.
Facing mounting financial losses and uncertainty surrounding Morocco’s burgeoning gigafactory sector, the Cobco joint venture is relying on short-term bridge financing from its shareholders, Chinese firm CNGR and the royal holding company Al Mada.
Cobco, a key component of Morocco’s developing national gigafactory ecosystem, and owned by CNGR Advanced Material and Al Mada, is securing short-term financing from its parent companies as its financial position deteriorates and its industrial project encounters a more uncertain operating environment.
According to a document reviewed by Le Desk and published January 23rd to securities authorities in Shenzhen, CNGR intends to extend a loan to Cobco capped at $70 million, equivalent to approximately 642 million Moroccan dirhams (MDH). The financing would carry a maximum interest rate of 7%, with a term not exceeding 12 months, and include a renewable drawdown option within the authorized period. The operation, already approved by CNGR’s board of directors, remains subject to approval by an extraordinary general meeting of CNGR shareholders, scheduled for February 12th.
Le Desk was the first to reveal
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