Morocco’s EV factory to run on wind power

November 04, 2024

From the newsletter

On October 29th, Gotion Power Morocco and ACWA Power officially signed a joint development agreement to construct a 500 MW wind power plant. This agreement paves the way for the construction of the power plant, which is expected to power the upcoming Gotion EV battery gigafactory.

  • The partnership will avail $800 million in the first phase and will have a battery storage capacity of 2,000 MWh.

  • The overall investment in the EV battery gigafactory is expected to be around $1.24 billion, with the potential to increase to $6.3 billion as Gotion scales up production capacity.

More details

  • Morocco has recently outpaced South Africa to become Africa's leading vehicle manufacturer. It has even toppled China and Japan to become a leading vehicle exporter to the EU. 

  • As the global shift to EVs takes shape, Morocco aims to maintain its automotive dominance by embracing this new technology. The country plans to achieve this with clean energy, including producing up to 4% of the world's green hydrogen by 2030.

  • The recently signed agreement is a major step towards realising the gigafactory in Kenitra, a city that already houses major vehicle manufacturing plants like Renault. 

  • This plan makes Gotion Power Morocco's gigafactory the first with its own dedicated wind farm. 

  • The main aim of this upcoming gigafactory is to produce EV batteries, generating an estimated 17,000 direct and indirect employment opportunities.

  • This plant aligns with Morocco's goal to attract $50 billion in high-value investments between 2022 and 2026, potentially creating 500,000 jobs.

  • Morocco possesses several minerals crucial for EV technology, including cobalt, phosphate, lithium, nickel, and manganese. 

  • Notably, it is the world's ninth-largest producer of cobalt, with reserves estimated at 2-3% of the global total, and holds 71% of the world's phosphate reserves, with 50 billion tons.

  • Morocco's entry into the EV battery market could disrupt existing supply chains and potentially reduce dependence on Asian manufacturers. The country's proximity to Europe and access to key minerals give it a strategic advantage. 

  • Morocco's main competitors in Africa's EV battery market include South Africa, which in October announced that one of its companies, Balancell, has opened operations on its battery manufacturing plant.

  • On a global scale, Morocco will face competition from major battery manufacturers in Asia, including China, which accounted for approximately 57% of the world's total production in 2019. 

  • Morocco's proximity to Europe and the region’s strict emission policies offer an opportunity to access the growing European EV market. 

Our take

  • Morocco is well aware of the cost of relying on its fossil fuel-based grid to manufacture EVs and has chosen to prioritise investment in renewable energy. 

  • This could potentially attract more investments in renewable energy and EV infrastructure, boosting Morocco's economy in general and accelerate its transition towards sustainable transportation.

  • Unlike competitors such as South Africa, which currently relies on coal-powered grids, Morocco's proactive investment in renewable energy positions it to produce EV batteries with a lower carbon footprint. This strategy makes its products more appealing to the EU, a key target market with ambitious sustainability goals and a strong push towards EV adoption.