Rabat Morocco is taking rapid steps to strengthen its position in the field of electric car production, after success in the broader automotive industry sector. Last week, the government signed an investment agreement of a strategic nature with the Chinese-European group GOTION High-Tech, which operates in Field of electric transportation.
Under the agreement, an industrial unit with an integrated system for the production of electric car batteries will be established in the city of Kenitra (40 kilometers north of Rabat), making this the first unit of its kind in the Middle East and North Africa.
The industrial sector’s latest step reflects the continued rapid movement in the Kingdom in recent years, especially in the automobile industry sector, as it aspires to produce one million thermal cars and 100,000 electric cars annually by 2025.
Investment details
Work on bringing Chinese investment to Morocco began more than two years ago, and discussions between the government and the Chinese-European company led to the signing of a memorandum of understanding in May last year to establish an industrial system for the production of electric car batteries and energy storage systems. This memorandum culminated in the signing of an investment agreement to establish a unit An industrial factory for the production of electric car batteries was built on the outskirts of the city of Kenitra, at an investment cost of 12.8 billion dirhams ($1.3 billion), which strengthens Morocco’s position in the automobile industry and the energy transition.
Goshen Hi-Tech is a pioneer in the electric battery sector, and its main shareholders include the Volkswagen Group.
The Ministry of Investment and Public Policy Evaluation described the investment as “strategic and important” and explained that it would enable the creation of an integrated industrial system for the production of electric batteries in the city of Kenitra.
The Ministry explained in its response to questions directed to it by Al Jazeera Net that construction of the factory will begin in the coming weeks and will take a period of two years, with production starting in the third quarter of 2026.
According to the same source, this project will enable the production of electric batteries with a capacity of up to 20 gigawatts per hour in a first phase with an investment value exceeding 1.3 billion dollars, eventually reaching a production capacity estimated at about 100 gigawatts per hour and with a total investment cost estimated at 65 billion dirhams. ($6.5 billion), expected to create about 17,000 job opportunities, including 2,300 opportunities attributed to highly qualified people.
The Ministry expects that this type of project will enhance Morocco’s ambition and will open a new door for other investors for new and fruitful partnerships.
She added that Goshen Hi-Tech’s investment, along with other projects in the field of electric transportation, will give greater value to the Moroccan product and will increase the attractiveness of the automobile sector, which is witnessing a positive and necessary transformation in the Kingdom to keep pace with the trend towards a carbon-free economy, especially since the electric battery is an essential component representing about 40 to 60% of electricity. % of the car’s value.
A proactive step
Director of the Moroccan Governmental Labor Observatory, Mohamed Al-Jadri, told Al Jazeera Net that this investment enhances the success of the automobile industry sector, as 700,000 cars are currently manufactured in Morocco.
Car exports from Morocco increased by 90% in 2023 compared to 2018 and 27.4% compared to 2022, achieving revenues worth 142 billion dirhams ($14.3 billion).
The government is working to increase the proportion of the local component of cars to 80%, and raise production capacity to one million cars annually by 2025.
Electric cars are manufactured in factories in Kenitra and Tangier, and Morocco has a production capacity of about 40,000 electric cars annually, and aspires to increase it to 100,000 by 2025.
Jedri said that Morocco’s move to open investment in the field of electric cars is a proactive step before the European Union (the Kingdom’s first partner) bans the use of cars with gasoline or diesel engines permanently by 2035.
He added: “Morocco should not waste the efforts of the past 20 years in the field of the automobile industry, and adapt this industry to the current challenges and to the standards of its economic partners regarding decarbonization.”
Jadri believes that this investment is strategic, given its value, which will reach about $6.5 billion, and the job opportunities it provides, and because it will allow the transfer of the expertise and experience of the Chinese-European company to Morocco, as Moroccan cadres will be trained in the field of manufacturing electric batteries, which will make Morocco an important number in the electric car industry. .
Technology localization
In turn, university professor and expert in renewable energies, Abdel Samad Malawi, expects that this investment will have positive effects on Morocco and its partners, especially the Europeans.
He explained in a comment to “Al Jazeera Net” that the establishment of this huge industrial unit will allow the transfer of advanced technology in the field of manufacturing electric batteries to Morocco and localizing it there, which will enhance its position in the field of production of electric cars or industries that generally depend on electric batteries.
He said that the cost of producing electric batteries in Morocco is low compared to countries that manufacture this type of battery, which will strengthen its position to attract other investments, and it is heading to be one of the basic industries that Morocco relies on to define itself internationally as a manufacturer.
The low cost of producing electric car batteries in Morocco, according to Malawi, is due to the presence of a group of raw materials used in the manufacture of lithium-ion batteries and the cathode material for manufacturing, and these materials include:
- Phosphate: Morocco has the largest reserve of it in the world, estimated at about 70% of global crude reserves, and is ranked second after China in terms of production, as its annual production is estimated at about 40 million metric tons. Phosphate provides the possibilities of storing energy, specifically “lithium-ion” batteries, which are important in the industry. Electric cars.
- Manganese: It is found in significant quantities in Morocco and is used in the manufacture of electric car batteries.
- Cobalt: The Kingdom annually produces an average of two thousand tons of cobalt, and its reserves amount to 17,600 tons. It ranks ninth in production and 11th internationally in global reserves, and it is the second most productive African country after the Democratic Republic of the Congo.
Malawi explained that this project is an opportunity for the Kingdom to develop new technologies for extracting and processing materials used in the manufacture and development of electric batteries. It is also an opportunity to take advantage of Morocco’s important geostrategic location to export electric car batteries to all countries of the world.
Partners and international interest
The Chinese-European group Gushen Hi-Tech is not Morocco’s first partner in the field of electric transportation, as other international companies have shown interest in investing in this field in Morocco, attracted by the infrastructure it has, the low cost, and the geographical location.
Two months ago, Prime Minister Aziz Akhannouch signed an investment agreement between the government and the Chinese BTR Group, worth 3 billion dirhams ($300 million), with the aim of establishing an industrial unit to produce negative electrodes (cathodes), which are considered a component. Essential for electric car batteries.
This project, whose construction work began in the Tangier Industrial City, is expected to contribute to the creation of about 2,500 job opportunities, and the first phase is expected to enter into operation in September 2026 with a production capacity of 25 thousand tons per year.
Before that, Guangzhou Tensi Company, one of the largest Chinese companies that manufacture battery materials for electric cars, announced an investment estimated at 3 billion dirhams ($300 million).
According to official data, investment in the field of electric transportation has witnessed a recent recovery, which is evident through the projects and agreements approved by the National Investment Committee at its session held in July of last year, as the electric transportation sector topped the investment projects that were approved. Accordingly, with a value of 22.5 billion dirhams ($2 billion), representing 71% of the total investments approved by the committee.
