Business
Chinese Firms Eye Morocco As Way To Cash In On US Electric Vehicle Subsidies
After the United States passed new subsidies designed to boost domestic electric vehicle production and cut into Beijing’s supply chain dominance, Chinese manufacturers began investing in an unlikely place: Morocco. In the rolling hills near Tangiers and in industrial parks near the Atlantic Ocean, 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.
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. 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.
The United States and European Union have both imposed major new tariffs on Chinese vehicle imports since May. The United States also finalized eligibility rules governing the tax credits 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 “foreign entities of concern” control more than 25% of the company or its board.
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. Expanding on infrastructure that has made Morocco a car manufacturing hub, 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’s second-largest.
Many are joint ventures that have cited their ability to tinker with board seats and governance to comply with U.S. rules. The Chinese battery projects include at least three joint ventures and several that reference Morocco’s trade ties with the United States. The largest among them is Chinese-German battery-maker Gotion HighTech, which signed a deal with Morocco last year for $6.4 billion investment to construct Africa’s first electric vehicle battery factory.
Investments also include Youshan, a joint venture backed by Korean giant LG Chem and China’s Huayou Cobalt. It declined to provide details about the size of their investment but said the Morocco base means their cathodes “will 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.” LG Chem said the venture would adjust ownership shares as necessary to comply with U.S. rules.
China’s BTR Group’s announcement of a cathode factory in April noted that Morocco’s trade status with the United States and Europe would ensure “a seamless entry for the majority of its manufactured products into these regions.” 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. 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. Ryad Mezzour, the country’s minister of industry and trade, said in an interview that all the new investment doesn’t tell the full story. Morocco has also lost out on some projects due to what he called “a new age of protectionism.”
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. “Under the Biden administration’s electric vehicle regulations, America’s working families will have to watch their hard-earned tax dollars go to line the pockets of Chinese billionaires and businesses with links to the Chinese Communist Party,” U.S. Rep. Jason Smith, a Missouri Republican, said
of the new guidelines
Business
Trump Seeks $152m to Reopen Alcatraz Prison, Faces Opposition
Trump Seeks $152m to Reopen Alcatraz Prison, Faces Opposition
United States President, Donald Trump, has proposed a $152m (£115m) allocation in the 2027 fiscal budget to reopen the infamous Alcatraz Island prison, sparking criticism from lawmakers and policy experts.
The facility, located near the Golden Gate Bridge in San Francisco, was once one of America’s most notorious maximum-security prisons but has since been converted into a major tourist attraction.
According to details of the proposal, the funds would cover the first phase of rebuilding the prison into a “state-of-the-art secure facility,” as part of a broader $1.7bn investment plan for the Federal Bureau of Prisons.
However, the plan has drawn sharp criticism from several California politicians, including former Speaker of the House, Nancy Pelosi, who described the proposal as “absurd” and a waste of public funds.
Pelosi said, “Rebuilding Alcatraz into a modern prison is a stupid notion that would be nothing more than a waste of taxpayer dollars and an insult to the intelligence of the American people.”
The prison, which was shut down in 1963 due to high operational costs, is currently managed by the National Park Service and generates about $60m annually from tourism.
Critics have also highlighted logistical challenges, noting that the island lacks basic infrastructure such as running water and sewage systems, with all supplies needing to be transported by boat.
Historical data from the Bureau of Prisons indicates that Alcatraz was nearly three times more expensive to operate than other federal prisons before its closure.
Concerns have also been raised over the potential loss of a historic landmark if the site is reconverted into a correctional facility, a position echoed by several San Francisco officials.
Despite the backlash, Trump had earlier announced via his Truth Social platform that he had directed relevant agencies, including the Department of Justice, FBI, and Homeland Security, to commence plans to rebuild and expand the prison to house “America’s most ruthless and violent offenders.”
Originally established as a naval defence fort, Alcatraz later served as a military prison before becoming a federal penitentiary in the 1930s.
It once housed notorious criminals such as Al Capone, Mickey Cohen, and George Kelly.
The proposal is subject to approval by the US Congress.
Analysis
Nigeria’s Stakes in a Fractured Middle East, by Boniface Ihiasota
Nigeria’s Stakes in a Fractured Middle East, by Boniface Ihiasota
As confrontation among the United States, Israel and Iran deepen, the tremors are being felt far beyond the Middle East. What may appear, at first glance, as a distant geopolitical rivalry carries significant consequences for economies like Nigeria’s, for Nigerians working across the Gulf, and for a government already grappling with fiscal, security and inflationary pressures at home.
The rivalry between Israel and Iran has simmered for decades, manifesting through proxy conflicts in Lebanon, Syria and Gaza. The United States, Israel’s closest ally, has repeatedly confronted Iran over its nuclear programme, regional influence and support for armed groups. Periodic flare-ups — including airstrikes, missile exchanges and targeted assassinations — have raised fears of a broader regional war. Each escalation has renewed concerns about the stability of the Gulf, which remains the artery of the global oil market.
The Strait of Hormuz, a narrow shipping lane between Oman and Iran, is one of the most strategic chokepoints in the world. According to the U.S. Energy Information Administration, roughly 20 per cent of global petroleum liquids consumption — about 20 million barrels per day — transits through that corridor. Any threat to traffic through the Strait immediately sends oil prices upward. In previous episodes of heightened tension, Brent crude prices have jumped sharply within days of military confrontations.
For Nigeria, higher oil prices present a paradox. Crude oil still accounts for the overwhelming bulk of Nigeria’s export earnings — typically between 80 and 90 per cent — and about half of government revenues. When global prices rise above budget benchmarks, the Federation Account stands to gain additional inflows. In times of fiscal strain, such windfalls can temporarily ease pressure on foreign reserves and public finances.
However, history teaches caution. Oil price spikes driven by conflict are often volatile and short-lived. Markets respond quickly to diplomatic signals, ceasefire talks or de-escalation efforts. Nigeria’s production constraints further limit how much benefit can be captured. The country has struggled in recent years to consistently meet its OPEC quota due to oil theft, pipeline vandalism and infrastructure challenges. Without sustained production above 1.5 million barrels per day, revenue gains from price increases may not fully translate into fiscal stability.
Beyond government revenue, there is the inflationary dimension. Rising global oil prices increase the cost of refined petroleum imports, shipping and logistics. Although Nigeria is expanding domestic refining capacity, it still imports a portion of its refined products. Higher energy costs globally can translate into higher prices for food, manufactured goods and transportation. In an economy already facing elevated inflation, any additional imported cost pressure could worsen living standards.
There is also the human dimension. Millions of Nigerians reside and work across the Gulf Cooperation Council countries, particularly in the United Arab Emirates, Saudi Arabia and Qatar. Remittances from Nigerians abroad are a critical pillar of household income and foreign exchange. The World Bank has estimated Nigeria’s annual remittance inflows in recent years at around $20 billion, making it one of the largest recipients in Sub-Saharan Africa. Any prolonged regional instability that disrupts employment, air travel or financial flows in the Gulf would directly affect Nigerian families.
During previous Middle Eastern crises, airspace closures and airline suspensions disrupted travel routes that many Nigerians rely upon for business, education and pilgrimage. Escalation between major regional powers raises the risk of similar disruptions. The Nigerian government must therefore maintain accurate records of its citizens in vulnerable areas and strengthen consular responsiveness.
Security considerations also demand attention. Nigeria is a religiously diverse society with historical sensitivities that can be inflamed by international events. Conflicts in the Middle East sometimes trigger protests or polarised rhetoric at home. Authorities must be vigilant to ensure that global tensions are not exploited by local actors to deepen sectarian divides or spread misinformation. In an age of social media amplification, narratives from distant battlefields can travel rapidly and distort domestic discourse.
Diplomatically, Nigeria occupies a delicate position. As Africa’s largest economy and a longstanding contributor to United Nations peacekeeping missions, Nigeria traditionally supports peaceful resolution of disputes and adherence to international law. Escalation between the United States, Israel and Iran will test the country’s diplomatic balancing act, particularly given its economic ties to Western partners and its solidarity with developing nations in multilateral forums.
Preparation, therefore, is essential. Fiscal prudence must accompany any temporary oil windfall. Excess revenues, if realised, should strengthen reserves and reduce debt vulnerabilities rather than fund unsustainable spending. Production security in the Niger Delta must remain a priority to ensure that Nigeria can benefit legitimately from favourable market conditions. The Central Bank and fiscal authorities must also anticipate currency volatility linked to global risk sentiment.
At the same time, diaspora engagement should be proactive. Clear communication channels, emergency response planning and coordination with host governments can mitigate risks to Nigerians abroad. Intelligence and community outreach at home will help preserve social cohesion.
The confrontation among the United States, Israel and Iran may unfold thousands of kilometres away, but its economic currents, security implications and political symbolism flow directly toward Nigeria. In an interconnected global system, distance offers no insulation. What remains within Nigeria’s control is preparedness — the capacity to convert short-term opportunity into long-term stability, and to shield its citizens from the unintended consequences of distant wars.
Business
Over 200 Killed in DR Congo Coltan Mine Landslide
Over 200 Killed in DR Congo Coltan Mine Landslide
More than 200 people, including 70 children, have died following a landslide at a coltan mining site in Rubaya, eastern Democratic Republic of Congo, the government said on Wednesday.
The tragedy struck on Tuesday after heavy rains in the rebel-controlled area, with authorities blaming the M23 rebels for allowing unsafe, illegal mining.
Rescue operations were hampered by dangerous conditions, officials added.
Rubaya, the country’s largest source of coltan, holds about 15% of the world’s supply of the mineral used in electronics. Many injured miners have been evacuated to hospitals in Goma.
The toll could not be independently verified due to restricted access, disrupted communications, and ongoing insecurity in the region.
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