Tunisia’s Pixii Motors gets $200k pre-seed funding

From the newsletter

Pixii Motors, an e-motorcycle company in Tunisia, has received $200,000 funding from Africa-focused early-stage investment firm Madica. The company manufactures electric scooters & provides battery-swapping solutions. Pixii was started in 2021 & seeks to compete with established EV firms such as IntiGo.

• Although the funding may seem small, Pixii will gain an 18-month mentorship on how to become competitive in both short and long term in the market which has very few e-motorcycle companies.

• Pixii is steering Tunisia towards e-mobility adoption in North Africa, despite the nation’s traditional focus on oil production. Egypt and Morocco are leading the electrification but now smaller countries like Tunisia and Libya are showing interest.

More details

• Tunisia currently has fewer than 100 electric vehicles (EVs) on its roads. Although the country has limited charging infrastructure, its VAT on EVs is lower than in other North African nations, such as Egypt (14%) and Morocco (10%), standing at just 7%. Additionally, Tunisia offers a 50% reduction in registration fees, making EV ownership more financially attractive. 

• However, the country’s small market size and limited vehicle production capacity suggest that direct EV manufacturing might not be viable. Entering Tunisia’s EV market remains risky for companies unless they adopt a long-term strategy.

• Companies that focus on assembling EVs rather than manufacturing them may find an easier path to success. Given the market’s small size, targeting exports to European and North African markets could be more viable than relying on domestic sales. 

• Tunisia’s rich phosphate reserves present an opportunity to establish a local EV battery supply chain, particularly for lithium iron phosphate (LFP) batteries. Phosphate is a key component of LFP cathodes, and Tunisia already possesses an established phosphate extraction and processing industry. 

• LFP batteries are gaining traction over traditional lithium-ion (NMC) batteries due to their cost-effectiveness, safety, and longer lifespan. Leading EV manufacturers such as Tesla, BYD, and Volkswagen have increased their adoption of LFP batteries, particularly for entry-level and mid-range EV models. 

• Tunisia could collaborate with Morocco, which has a strong automotive and battery assembly ecosystem, to develop a regional LFP battery industry. Morocco has already secured major investments from European automakers, making it an ideal partner for joint ventures in battery production and recycling. 

Our take

• Given Tunisia’s historical strength in vehicle assembly, investors could establish joint ventures with European automakers looking for a lower-cost assembly base. 

• Despite its small domestic market, the country can use its strengths in vehicle assembly, phosphate resources, and favourable EV taxation policies to attract investors looking for cost-effective production and export opportunities.

• Regional partnerships with Morocco will be key to scaling battery production and securing access to major EV supply chains. A Tunisia-Morocco battery alliance could focus on phosphate processing in Tunisia and final battery assembly in Morocco, leveraging Morocco’s export infrastructure and trade ties with Europe.