A growing automotive sector in Morocco Targets EV Battery production

With a growing automotive sector in Morocco, the country has ambitious aspiration to lure more electric battery manufacturers, aligning with the surging demand for electric vehicles. The automotive industry’s stellar performance, topping Morocco’s industrial exports at $14 billion in 2023 with a notable 27% uptick, underscores its significance.

Strategic Partnerships with Chinese Companies

In line with this, Chinese companies are increasingly eyeing Morocco as a strategic base for supplying the burgeoning electric vehicle markets in the US and Europe. CNGR Advanced Material’s recent announcement of a $2 billion investment in a cathode materials plant is a testament to this trend. Collaborating with Al Mada, a conglomerate owned by the Moroccan royal family, CNGR aims to meet the soaring demand for EV batteries, targeting production capacity for up to 1 million EVs annually.

Attractiveness of Morocco for Chinese Producers

Thorsten Lahrs, CEO of CNGR Europe, highlighted Morocco’s attractiveness, citing geopolitical tensions and bureaucratic hurdles in the US and Europe as deterrents to direct investment. Lahrs emphasized the flexibility and efficiency offered by Moroccan partnerships, where groundbreaking for projects can commence swiftly.

Abundant Natural Resources and Strategic Positioning

Moreover, Morocco’s abundant natural resources, including substantial phosphate reserves and significant cobalt production, further enhance its appeal to EV battery manufacturers. Additionally, Morocco’s status as a free trade partner with the US provides strategic advantages, aligning with President Joe Biden’s Inflation Reduction Act (IRA) and facilitating access to subsidies for EVs utilizing Moroccan-sourced materials.