A groundbreaking initiative led by Morocco’s Mohammed VI Polytechnic University (UM6P) is set to reshape global supply chains for electric vehicles and semiconductors. Through its venture builder, INNOVX, the university has secured over $110 million (MAD 1 billion) in financing from Bank of Africa to fund the development of a large-scale industrial facility that will convert phosphate mining waste into critical fluorine-based materials.
The investment will support Fluoralpha, a subsidiary of INNOVX established in 2023, in building a cutting-edge plant in Jorf Lasfar, a strategic industrial and port zone on Morocco’s Atlantic coast. The facility is part of a broader MAD 2.5 billion ($280 million) investment aimed at creating a new supply chain hub just outside Europe.
Unlike traditional methods that rely on mining fluorspar, Fluoralpha will utilize hexafluorosilicic acid (H₂SiF₆), a byproduct of Morocco’s extensive phosphate rock processing industry, as its feedstock. This innovative approach not only reduces environmental impact but also leverages Morocco’s natural resource advantage to produce two essential materials:
- Anhydrous Hydrofluoric Acid (AHF) – With a projected annual output of 20,000 tons, AHF is a key ingredient in semiconductor manufacturing and the production of LiPF₆, the electrolyte salt used in lithium-ion batteries.
- Aluminum Fluoride (AlF₃) – The plant will produce 28,000 tons per year, used to reduce energy consumption in aluminum smelting.
This project marks a pivotal shift in Morocco’s industrial strategy, from being a raw material exporter to a producer of high-value components for global technology supply chains. With over 70% of the world’s phosphate rock reserves, Morocco is now leveraging its resources to support the green energy transition and reduce global dependence on traditional suppliers, particularly in Asia.
Jalil Skali, CEO of Fluoralpha, said:
We are transforming a by-product of Moroccan phosphate rock into strategic materials essential to the industries of the future. Our ambition is clear: to establish Morocco as a global hub for fluorine products.
As geopolitical tensions and supply chain vulnerabilities continue to challenge global manufacturers, especially in Europe, Morocco’s initiative offers a geographically convenient and politically stable alternative. The project aligns with broader efforts by industrial economies to de-risk supply chains and secure access to critical materials.
Khalid Nasr, Executive General Manager at Bank of Africa, said:
This financing reflects our commitment to backing innovative and sustainable initiatives that strengthen Morocco’s industrial development and position it as a regional hub.
Fluoralpha’s long-term vision includes expanding its product portfolio to include synthetic calcium fluoride, further reducing reliance on mined fluorspar and enhancing Morocco’s industrial sovereignty. The company aims to become a key supplier to Europe’s gigafactories and semiconductor fabs, offering a reliable source of materials essential to next-generation technologies.
Youssef Berrada, CFO of INNOVX, added:
This financing sets a precedent for future opportunities across our venture portfolio, all aligned with the energy transition.
