Morocco Enters Electric Vehicle Market with Tesla Component Production

STMicroelectronics is about to inaugurate a new production line for chips for electric vehicles in its Bouskoura plant following the choice made by billionaire Elon Musk on Morocco. "Morocco’s entry into the production of electronic chips propels the kingdom to the top of the table. Thanks to the agreement between STMicroelectronics and Tesla, Morocco could manufacture electric vehicles," wrote Professor Michael Tanchum in a recent article published in the Middle East Institute.

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"This announcement makes Morocco the first African country to enter the emerging market of electric vehicle exports," comments The Maritime Executive, noting that globally there has been a critical shortage of electronic chips. A shortage that Morocco will fill. The news site estimates that "Morocco is becoming an automotive manufacturing hub for European industrialists". This, thanks to a thriving industrial logistics and its large container port in Africa, Tanger Med.

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"Morocco, with a production capacity that will reach 700,000 vehicles per year in 2023, has surpassed South Africa as the automotive construction hub on the African continent," said French economist Henri-Louis Védie. The expert notes that the presence of European automotive giants has been of great benefit to the kingdom, in that it has strengthened its position in terms of automotive exports.

"In 2019, the sales of the Moroccan automotive industry represented 27.6% of the kingdom’s exports. These companies have attracted 200 other international suppliers operating their own local manufacturing plants. Morocco has managed to gain the trust of industrialists and has demonstrated its potential thanks to the quality of its skills and infrastructure," said Henri-Louis Védie.