Morocco Poised to Become Global Electric Vehicle Manufacturing Hub, Study Finds

The American think tank Middle East Institute recently published a new study entitled "Morocco’s Green Mobility Revolution: The Geoeconomic Factors Driving Its Rise as a Manufacturing Hub for Electric Vehicles". It indicates that Morocco’s rise as a global hub for electric vehicle manufacturing is essential not only for the resilience of the Western supply chain, but also to promote decarbonized mobility to fight climate change.

"The focus on shortening supply chains to ensure the stability of European consumer markets has already fueled the rapid advancement of the automotive manufacturing sector in Morocco and its development of more advanced manufacturing processes," notes the American think tank, stressing that Morocco’s mineral reserves for batteries are accelerating its entry into electric vehicle manufacturing. "With vast solar and wind energy resources, as well as large-scale infrastructure already in place to harness them, Morocco has the potential to drive a green mobility revolution by powering electric vehicle production with renewable energy," the study details.

The Middle East Institute also commented on statements by Industry Minister Ryad Mezzour. He had declared on July 21 that Morocco was considering signing a $2 billion deal with EV battery manufacturers to set up a local gigafactory for production. "Battery production for electric vehicles on such a scale would be well-suited to Morocco’s impressive automotive manufacturing ecosystem, which already has the capacity to produce over 700,000 vehicles per year," the study also notes. And to conclude: "The key to Morocco’s rise as a green mobility manufacturing giant will be the expansion of its automotive ecosystem to include local lithium-ion battery manufacturing, which accounts for 30 to 40% of the cost of an electric vehicle on average."