Chinese EV Battery Makers Invest Heavily in Morocco’s Booming Auto Industry

The automotive industry was virtually non-existent in Morocco just twenty years ago. Today, it is booming, with the kingdom becoming the leading supplier of cars to Europe. Last year, 535,000 vehicles were manufactured in Morocco, 87% of which were exported, an increase of 30% compared to 2022. The kingdom plans to increase its production to 700,000 vehicles this year. "The goal is to reach 1.4 million cars in the next four years," Riyad Mezzour, the Minister of Trade and Industry, recently told the House of Representatives.

Nearly 40,000 electric vehicles, mostly Citroëns, will be manufactured in Kenitra this year. Morocco wants to double this production next year and reach 100,000 vehicles, announced Ryad Mezzour. Renault, the first automaker to settle in Morocco in 2012, produced its first hybrid vehicle, the "Dacia Jogger," on site on July 11. Some 200 units of this model will be manufactured per day. Peugeot, now Stellantis, also has a factory in Kenitra. In total, about 250 European and Asian companies manufacture cars or their components in Morocco.

But if the automotive industry in Morocco is dominated by French manufacturers, the battery industry will be developed by the Chinese. In total, six Chinese giants of batteries and other components for electric vehicles such as copper cathodes will invest around 10 billion euros in Morocco in the coming years, reports El Confidencial. These are BTR New Material, Tinci, Shinzoom, Hailiang, Gotion High-Tech and CNGR Advanced Material. Gotion High-Tech signed a memorandum of understanding last year for the construction of a lithium, iron and phosphate battery factory. The project is expected to require an investment of more than 1.2 billion euros.