Back to News
Over the past year, Morocco has emerged as a key hub for EV battery manufacturing, with numerous companies announcing plans to establish operations there. This month, Gotion High Tech finalised plans to establish a 20GWh gigafactory in Morocco, joining many other Chinese firms moving into the region. Morocco already has a strong automotive industry, producing around 700,000 vehicles annually, with expectations to expand this to one million by 2025. The country is now looking to turn towards its EV production capabilities.
What does Morocco offer?
For manufacturers, Morocco offers a combination of strategic location, affordable labour, raw materials, and access to renewable energy. Located just 15km from Spain, Morocco benefits from low logistic costs and risks. Additionally, its free trade agreements with the US and EU allows companies to target both European and North American markets. Furthermore, Morocco provides access to Africa’s rich mineral resources, including its own phosphate and cobalt reserves, all within a politically stable country.
The Moroccan government is also fostering the industry through tariff reductions. In 2022, the government reduced the import duty on lithium-ion cells from 40% to 17.5%, aiming to encourage the establishment of a battery assembly sector.
Who operates there?
Morocco has been identified as a prime location for facilities by European, North American, and Chinese companies alike. No fewer than six Chinese firms have announced plans or begun construction of battery materials or production plants in the country, attracting a total investment of over USD10 billion. Notable players include Gotion, LG Chem in partnership with Huayou Group, BTR New Materials, and CNGR, that is establishing a recycling and pCAM production plant there. Ex-China players include Renault and Stellantis both of whom have operated in the country for some time and continue to expand operations.
Rho’s evaluation, what does the future hold?
Looking ahead, Morocco is set to…
For full access to our news and insights, log in to our Membership Platform
If you’re not yet a member and would like a trial, fill in the form below.