Morocco seeks end-to-end EV manufacturing in 2026

From the newsletter

Morocco is aiming to become the first country in Africa and the seventh in the world to do end-to-end manufacturing of electric vehicles in 2026. This means complete EV manufacturing capabilities, from raw material processing to final assembly. Currently, only China, the US, Germany, South Korea, Japan and India have this capacity.  

• Morocco will process its critical minerals – cobalt, copper and phosphate – locally to make components such as batteries and high-strength metal alloys. This value-addition will mean more, as the country earns less by selling them cheaply in raw form.

• Being an end-to-end manufacturer of EVs will enable the country to control its entire supply chain, cutting reliance on volatile foreign markets for key components. In an age where tariffs and embargoes are increasingly being applied, it will give Morocco a huge advantage.

More details

• Morocco, the leading exporter of motor vehicles to Europe, is targeting to become a major EV manufacturing power. The North African country has several advantages, including significant solar and wind energy potential, which can be used to power EV production and charging infrastructure.

• The country has already attracted investments worth billions of dollars across the EV value chain, especially battery manufacturing. For instance, China’s Hunan Zhongke Shinzoom Technology plans to build a $460 million factory to produce lithium battery anode materials.

• COBCO, a joint venture between Chinese battery manufacturer CNGR Advanced Material Co and Moroccan holding company Al Mada, recently launched a $2 billion battery factory in Morocco. The 200-hectare factory, which is strategically located near the Jorf Lasdar port, has the capacity to produce batteries for 1 million electric vehicles annually.

• At the same time, China’s Jiangsu BTR New Material Group also plans to build a factory to produce lithium battery cathode materials, with an annual capacity of 50,000 tonnes. The factory will be built in phases and will be located in Morocco’s Tangier Technopark City.

• Morocco is also preparing a local market for the EVs it will make. The country currently imports most of its EVs from established manufacturers such as China. It plans to purchase more than 3,000 electric buses to be used for public transportation ahead of the FIFA 2030 World Cup, which it will co-host.

• But Morocco will also find a growing market for EVs on the continent, which currently imports most of its electric cars, mainly from China. Countries such as Senegal, Ghana, and Cote d’Ivoire, which are not too far from Morocco, are witnessing increased interest in EVs.

• Currently, South Africa is the leading producer of EVs in Africa, with more than 23 different models expected to be sold in the country this year. Egypt, Kenya and Nigeria also have budding EV-making capabilities, but mainly in the two-wheeler segment. 

Our take

• Moving towards end-to-end manufacturing of EVs is a no-brainer for Morocco. Its proximity to Europe, a major EV market, and its access to key shipping routes make it an ideal location for exporting EVs.

• The goal of achieving this milestone by 2026 is however ambitious, even for Morocco. It will likely continue to rely on imported components for years to come, even as it gradually builds its local capacity.

• Morocco already has a robust automotive sector, with a large production capacity and a skilled workforce. This makes it easier to transition to the production of EVs compared to other African countries that would have to start from scratch.