Morocco targets 1.4 million cars in four years

Morocco plans to increase its car production capacity from 700,000 cars currently to 1 million next year and 1.4 million in four years, industry minister Ryad Mezzour said.

“The goal is to reach a capacity to produce 1.4 million cars within the next four years, given the existence of the electrical car sector which will make Morocco among the four or five nations that have a complete supply chain of such an industry,” Mezzour told members of the upper house.

With 14 billion dirhams last year, the automotive sector topped Morocco’s exports, thanks to a cluster of producers of all car components, including production plants by Stellantis and Renault.

The car industry, which employs 260,000 people, has a capacity to increase its exports three-fold, he said.

Morocco has been attracting electric vehicle battery manufacturers, building on the availability of skilled labor and minerals, key to the energy transition such as phosphates and cobalt.

The friendly-investment climate, incentives, and world-class infrastructure also helped attract battery giants.

The minister mentioned in particular the role of Tanger Med port, the Mediterranean’s largest, in offering an export route at the gate of Europe and Africa.

China’s copper foil producer Hailiang and anode maker Shinzoom signed a deal with Tanger Tech to build two plants for a total investment close to $1 billion, adding to a list of Chinese electric battery investors in the Kingdom.

The projects confirm Morocco’s attractiveness to Chinese electric battery manufacturers after BTR New Material Group and CNGR Advanced Material received government approval to build cathode plants in the country.