Chinese company Zhejiang Hailiang has announced plans to invest $288 million in a Moroccan facility to produce copper foil for lithium batteries to power electric vehicles.

According to press reports, citing the Company’s filing to the Shenzhen Stock Exchange, the new Moroccan base will enable the Chinese producer of copper tubes and rods to meet growing demand around the world and better serve its clients in Europe, America, the Middle East, and Africa.

The Moroccan plant is expected to produce annually 50,000 tons of alloy, 35,000 tons of pipe, 40,000 tons of rod, and 25,000 tons of foil, following a construction period of 36 months.

Zhejiang Hailiang said it has chosen the North African Kingdom because of the free trade agreements sealed with the U.S., the European Union, and Turkey, besides the country’s strategic geographic position, political stability, incentives to investors, and competitive industrial eco-systems.

Moreover, the project will benefit from lower raw material costs, leveraging Africa’s abundant copper deposits, which aligns with the company’s strategy to optimize production efficiency and cost-effectiveness.

Zhejiang Hailiang operates production sites in several countries, including the United States, Germany, France, Italy, Spain, Vietnam, and Thailand.