Morocco is strengthening its position as one of the world’s emerging investment hubs for the electric vehicle (EV) industry, thanks to a long-term industrial strategy that is enabling the country to integrate progressively into higher value-added global supply chains, the United Nations Conference on Trade and Development (UNCTAD) said in its World Investment Report 2026, released Tuesday.
The UN agency identifies Morocco among a new generation of destinations attracting international investment in electric vehicles, alongside Brazil, India, Saudi Arabia, and Thailand, amid the ongoing geographic diversification of global manufacturing supply chains.
According to the report, Morocco’s entry into electric vehicle battery manufacturing is not the result of short-term investment incentives but rather the outcome of an industrial strategy pursued consistently over more than two decades.
UNCTAD notes that the National Pact for Industrial Emergence, the Industrial Acceleration Plan, and the 2022 Investment Charter have helped establish an export-oriented automotive platform built on well-developed industrial zones, free-zone incentives, a growing network of local suppliers, and specialized workforce training programs.
These policies have created the industrial capabilities and skilled workforce that enabled the acceleration in 2024 of a battery gigafactory project in the Rabat-Salé-Kénitra region. The project represents an initial investment of approximately $1.3 billion and could ultimately reach $6.5 billion, with production capacity expected to expand from 20 GWh to 100 GWh, reflecting Morocco’s ambition to move beyond vehicle assembly into battery cell manufacturing.
UNCTAD also highlights Morocco as one of the emerging production platforms in clean technologies, benefiting from the restructuring of global supply chains and growing investment by international companies, particularly Chinese firms, in batteries and electric vehicles.
Regarding foreign direct investment (FDI), UNCTAD reports that Morocco attracted $3.338 billion in FDI inflows in 2025, up from $1.748 billion in 2024, while the country’s inward FDI stock reached $80.8 billion by the end of 2025.
Globally, foreign direct investment increased by 6% in 2025 to reach $1.6 trillion, ending two consecutive years of decline. However, the report cautions that the recovery remains limited, fragile, and uneven.
