Morocco’s automotive sector prepares for shift to electric vehicles

Morocco’s growing automotive sector is preparing the ground for the shift to electric vehicles as the country ambitions to set up a battery factory and further bolster the competitiveness of local part makers.

In a push to achieve zero emission quest by 2050, the EU imposed a ban on petrol and diesel cars from 2035. This means car makers have to adapt to EV or leave the EU market.

Industry minister Ryad Mezzour told Reuters in a recent interview about ongoing talks with several manufacturers for the setting up of an EV battery plant in Morocco, where renewable energy, cobalt and phosphates are locally available.

Morocco could also easily import lithium in view of its good commercial ties with exporting countries such as the DRC and Chile.

Last year, Morocco exported some 700,000 vehicles, while the production capacity of EV cars stood at 50,000, a figure that is set to double in the next two years, the minister said.

In March, Morocco’s industry ministry signed deals with five wire harness suppliers to set up plants in Morocco for investments worth 180 million dollars as demand grows from EV manufacturers at home and abroad.

Morocco is also trying to foster its position in the global semiconductor supply chains. The country is already home to suppliers such as ST Microelectronics which expanded its solar-powered Casablanca plant.

An industry source said Morocco has been affected by the semiconductor crisis as the global economy shakes off dust from Covid and demand grows on cars. At that time, Moroccan semiconductor makers were exporting rather than supplying the local market.

“Now bridges have been built to supply Morocco-based car-makers with semiconductors made in Morocco,” the source said, requesting anonymity.