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Morocco Takes Steps to Establish Robust EV Battery Industry


Morocco is striving to become a major global player in the electric vehicle (EV) battery production industry. The country’s latest move comes through a newly announced partnership between Moroccan investment fund Al Mada and Chinese battery component manufacturer CNGR Advanced Material Co.

The two companies will jointly invest over $2 billion to establish an industrial EV battery production base in Morocco. With its vast phosphate reserves and proximity to Europe’s growing EV markets, Morocco is ideal for manufacturing lithium ferrophosphate (LFP) cells increasingly used in EVs.

The partners plan facilities to produce battery precursors, active materials, cathodes and recycling capabilities. Initial production is slated for 2025, with a targeted capacity exceeding one million EVs annually.

This collaboration bolsters Morocco’s appeal as a strategic global EV battery hub. It follows the government’s talks with Chinese battery giant Gotion High Tech on a potential $6.3 billion factory. Though not finalised, it signals intent to scale production.

Morocco leverages existing auto and renewable energy expertise while securing raw materials like cobalt and phosphates. With plants from Renault, Stellantis and others, its 700,000 vehicle capacity solidifies African leadership. EV leader Citroen already makes 50,000 electric cars locally.

The country is also strategically located for exporting to Europe and the United States. Its automotive exports generated over $11 billion in 2022, rising 33% year-over-year. With the sector contributing significantly to foreign trade, Morocco is incentivised to strengthen its EV capabilities.

But the move also supports decarbonisation and energy goals within Morocco. The country aims to reach 52% renewable energy by 2030, necessitating growth in electrified transport. Building a robust domestic EV supply chain serves environmental and economic objectives simultaneously.

With burgeoning local demand for EVs and exports overseas, Morocco aspires to be integral to global battery production networks. Its partnerships leverage existing advantages while scaling next-generation technologies.

By proactively facilitating large-scale investments, Morocco signals its readiness to assume a leadership role in the worldwide transition to electric mobility. Its commitment to nurturing a sustainable EV industry will enable benefits beyond its borders.



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