The presence of major Chinese players such as BTR New Material Group, Gotion High-Tech, and CNGR, combined with strong political commitment, places Morocco in a prime position to capture a substantial share of Africa’s electric battery market, estimated at $10 to $15 billion per year, according to the Manufacturing Africa program.
According to the Manufacturing Africa program, the electric battery market in Africa could generate between $10 and $15 billion annually. With its cobalt and phosphate reserves, favorable trade agreements, skilled workforce and modern infrastructure, Morocco has everything it takes to become a key player in the sector on a global scale. For more than a decade, Morocco has been building a robust automotive ecosystem, propelling the country to become one of Africa’s leading vehicle producers and exporters. With annual production of 700,000 vehicles by 2023, generating revenues of over $11.5 billion by the end of October 2024, according to the head of government, Aziz Akhannouch, in his speech to the House of Councillors in Rabat, including a growing share of electric and hybrid models.”Thanks to the government’s efforts, Morocco has become a major center of the automotive industry in Africa, taking first place on the continent with an annual production capacity around 700,000 cars,” said Akhannouch. This feat is the result of an ambitious strategy that has transformed the country into a hub for the assembly and manufacture of automotive parts, attracting multi-billion dollar investments…
Industrial zones dedicated to the automotive industry, such as those in Tangier Med, Kénitra and Casablanca, have attracted international investors, benefiting from an advantageous tax framework, free trade agreements with Europe and the United States, and a skilled workforce. This dynamic has fostered the emergence of an innovative sector that is now turning to the manufacture of electric batteries to strengthen local integration and reduce dependence on imports of strategic components.
An integrated industrial strategy and massive investment
The turning point came in March 2024 with the official launch of the Moroccan ecosystem dedicated to electric batteries. This ambitious project is based on colossal investments and the establishment of world leaders in the sector. Among the flagship initiatives is the electric battery gigafactory in Kénitra, supported by the Sino-European group Gotion High-Tech and the CNGR-Al Mada alliance. With an investment of around 1,412,377,400 US dollars (14 billion dirhams), this plant will produce lithium-iron-phosphate (LFP) batteries, a key technology for sustainable mobility. The project is expected to create 17,000 direct and indirect jobs, and is targeting a capacity of 20 GWh in the first phase, with an eventual expansion to 100 GWh. BTR New MaterialGroup’s cathode production plant at Tanger Tech represents an investment of $302,652,300 (MAD 3 billion).
With an annual capacity of 50,000 tonnes, this infrastructure is expected to generate 2,500 jobs and reduce the carbon footprint by producing essential components locally. BTR’s $370 million anode plant project, also located at Tanger Tech, will produce 60,000 tonnes of negative materials for lithium-ion batteries. This initiative reinforces Morocco’s determination to control the entire production cycle for electric batteries, from raw materials extraction to vehicle assembly, and the involvement of CDG Invest, which will inject 326 million USD (MAD 3.16 billion) into the Gotion High-Tech gigafactory, testifies to the commitment of Moroccan institutions to supporting the development of this strategic sector.
The accelerated development of the electric battery industry in Morocco represents an opportunity for investors. With attractive tax incentives, and a clear strategy backed by royal determination, the country offers an environment that is conducive to the establishment of new industries.
