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Morocco Aims to Boost Electric Car Production to 1 Million Annually by 2025

Monday 29 August 2022, by Sylvanus

A total of 700,000 cars are manufactured in Morocco each year. The kingdom, which aspires to dethrone China, is not resting on its laurels. It dreams big for the sector.

According to the latest report published by the Institute for Near East Studies and carried out by the researcher Michel Tanchum of the University of Navarre, Morocco intends to increase its automotive production to one million cars per year by 2025, most of which will be electric vehicles. To meet this challenge, the Moroccan government has taken certain measures. In November 2021, it had proposed to reduce import duties on lithium-ion cells from 40% to 17.5% to promote local assembly of "Li-ion" batteries using cells imported from East Asia.

Morocco owes its rise as a giant in the manufacture of green means of transport to the expansion of its automotive ecosystem to include local production of "Li-ion" batteries, which represent 30 to 40% of the average cost of an electric vehicle, the Institute for Near East Studies report states. According to the institute, the new "Giga-factory" that Morocco intends to host could produce some 300,000 additional vehicles targeted as electric vehicles.