China eyes Morocco for EV production

Morocco has been making headlines recently for its enormous potential as a hub for electric vehicle (EV) manufacturing. The North African country’s low-cost, green energy, and strategic location between Europe and Africa have caught the attention of Chinese automakers looking to expand their operations in Europe. In an exclusive interview with China Daily, Mohcine Jazouli, Morocco’s minister delegate to the head of government in charge of investment, convergence, and the evaluation of public policies, highlighted the enormous potential for cooperation between Chinese and Moroccan companies in the EV sector.

Jazouli stated that Chinese automakers, particularly EV manufacturers, have faced numerous supply chain challenges, including pandemic-related disruptions, geopolitical tensions in Ukraine, labor shortages, and rising energy prices. Furthermore, the European Union’s carbon border adjustment mechanism, the United States’ Inflation Reduction Act, and the European Commission’s Net-Zero Industry Act have all imposed more stringent requirements on Chinese EV exports.

Amid this backdrop, Chinese EV manufacturers are seeking a new location for their next production facility. According to Jazouli, Morocco is an ideal solution, offering the necessary expertise and help in reducing energy costs by providing low-cost green electricity. Morocco is home to the world’s largest solar farm, the Noor Ouarzazate Complex, which spans 3,000 hectares and can generate enough electricity to power a city the size of Prague. In 2022, around 41% of Morocco’s electricity was sourced from renewable sources.

In addition to being an “international auto-supply base with access to the auto market and a willingness to do business,” Morocco’s mining resources present significant opportunities for Chinese EV manufacturers, according to Jazouli.

China’s growing interest in Morocco as a hub for EV manufacturing could have far-reaching implications for the global auto industry. The country’s strategic location and low-cost, green energy could provide Chinese automakers with a competitive advantage in the European market, particularly as the continent moves towards net-zero emissions. As the auto industry continues to evolve, Morocco’s potential as a hub for EV manufacturing is likely to become even more attractive to Chinese and other global automakers.