China Has Committed $10 Billion to Morocco, but Still Isn’t Building Cars There
More than $10 billion in Chinese investment has been committed in Morocco, mainly in energy and electric vehicles. Yet Chinese automakers still do not assemble their cars there. A crucial step is missing to fully benefit from privileged access to the European market.
The $10 billion threshold for commitments was passed in March 2026. According to an analysis published on October 27 by Foreign Policy, Chinese capital is concentrated in batteries, industrial materials and energy. These sums relate to announced or committed projects whose implementation will span several years.
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In Kénitra, Gotion High-Tech is developing a battery factory representing an initial investment of $1.3 billion. In Jorf Lasfar, the CNGR group has partnered with Al Mada on a battery materials project worth around $2 billion. In Tanger Tech, BTR and tire manufacturers are also expanding China’s presence.
Components are arriving, but the cars are still waiting
Morocco’s industry already assembles vehicles for Renault and Stellantis. But no Chinese automaker yet operates its own assembly plant there, the American magazine reports.
BYD had announced plans to set up in Morocco in 2017, with ambitions spanning electric vehicles and batteries. The project was ultimately abandoned after years of deadlock. Financing difficulties and the limited development of charging infrastructure weighed on its prospects.
The tariff calculation is significant. Electric cars made in China are subject to a standard 10% duty, to which an additional duty of up to 35.3% may apply, according to the European Commission.
A vehicle assembled in Morocco could avoid these duties if it meets preferential rules of origin, including the limit of 45% non-originating components.
That prospect explains Morocco’s appeal to Chinese manufacturers: the phosphates needed for batteries, proximity to Europe, the port of Tanger Med and automotive suppliers already established there. The next turning point would be the opening of an assembly line operated by a Chinese automaker, following the billions committed upstream.
