Morocco is emerging as a pivotal player in the global electric vehicle (EV) industry, attracting significant international investments to bolster its position as a hub for renewable energy and advanced manufacturing. The latest entrant in this burgeoning sector is Chinese battery giant Gotion High-Tech, which has announced plans to invest €128 million to establish a lithium battery manufacturing plant near Casablanca. This development marks a critical juncture in Morocco’s bid to become a central hub for electric vehicle (EV) production and innovation.
Gotion’s new facility will have an initial production capacity of 20 gigawatt hours (GWh), with the potential to expand to 100 GWh. This investment aligns with Morocco’s strategy to strengthen its renewable energy capabilities and increase the local production of components for electric and hybrid vehicles. The Chinese company plans to leverage its own funds, alongside additional financing, to construct this state-of-the-art facility.
The project is part of Gotion’s broader vision to support the global renewable energy sector and meet rising market demand. Similar ventures are being planned in Slovakia, showcasing the company’s dual focus on the European and African markets. By establishing a Moroccan base, Gotion aims to cater to the European Union (EU) market, leveraging Morocco’s strategic location, cost advantages, and favorable trade agreements.
Morocco has become an attractive destination for global automakers and battery manufacturers due to its political stability, competitive production costs, and proximity to Europe. The country already hosts major automotive players such as Renault and Stellantis, whose facilities collectively produce 700,000 vehicles annually. Renault, for instance, plans to manufacture 120,000 units of its hybrid Dacia Jogger at its Tangier plant starting in the second quarter of 2024, while Stellantis is eyeing increased EV production in the region.
The Moroccan government has been proactive in nurturing this ecosystem. It has set ambitious targets to increase the share of locally sourced components in automotive exports from 65% to 80%, and aims to produce around 1 million EVs annually within the next three to four years. Morocco’s Industry and Commerce Minister Ryad Mezzour recently emphasized the country’s readiness to capitalize on the growing demand for EVs, highlighting the role of public-private partnerships in achieving these goals.
Gotion’s investment in Morocco extends beyond battery production. The company is reportedly collaborating with local entities to develop a comprehensive supply chain for EV manufacturing. This includes potential partnerships with Moroccan mining firms to secure key raw materials such as cobalt sulfate. Last year, Renault signed a deal with Morocco’s Managem Group to procure 5,000 tons of cobalt sulfate annually for seven years starting in 2025, a move that underscores the strategic importance of Morocco’s mineral resources.
Morocco’s commitment to green technologies is further demonstrated by its support for R&D initiatives. Notably, discussions are underway to establish a battery research center at the Private University of Fez, leveraging the expertise of Rachid Yazami, the Moroccan scientist credited with inventing the graphite anode for lithium-ion batteries.
Morocco’s proximity to major European markets and its competitive cost structure make it an attractive alternative for EV companies seeking to streamline supply chains.
Additionally, Morocco’s participation in the African Continental Free Trade Area (AfCFTA) positions it as a gateway for exporting EVs and components to other African markets. This dual focus on Europe and Africa enhances the country’s economic competitiveness and trade balance.
Gotion’s investment underscores Morocco’s growing prominence in the global EV industry. With a robust automotive ecosystem, abundant natural resources, and strategic geographic advantages, the country is well-positioned to become a key player in the transition to sustainable mobility. As investments like Gotion’s take root, Morocco’s vision of becoming a central hub for electric vehicles and renewable energy solutions inches closer to reality.