Morocco bets on manufacturing a million cars per year by 2025

A recent report issued by the Washington-based Institute for Near East Studies revealed that Morocco currently produces 700,000 cars a year, half of which are exported abroad, while Rabat aims to increase production to one million cars. by 2025.

The same report, by researcher Michel Tanchum of the University of Navarra, stated that the production of batteries for electric cars would be suitable for Morocco’s impressive car manufacturing ecosystem, which already has the capacity to produce more than 700,000 cars a year.

Rabat now aims to increase production to one million cars per year by 2025, many of which are electric cars.

In November 2021, the Moroccan government proposed to reduce import tariffs on lithium-ion cells from 40% to 17.5% to promote the local assembly of lithium-ion batteries using cells imported from East Asia.

The international report highlighted that the key to Morocco’s rise as a green transport manufacturing giant is the expansion of its automotive ecosystem to include the local manufacture of lithium-ion batteries, which account for 30% to 40% of the cost. of an average electric vehicle.

Therefore, the report states, the new Giga plant could accommodate the production of an additional 300,000 vehicles earmarked for electric vehicles.

Nearshoring, along with smart industrial planning in Rabat and a strategic bloc of foreign partnerships, is a driver of the momentum that drives the progress of Morocco’s automotive industry.

And in the years immediately before the outbreak of the “Covid-19” epidemic, global supply chains began to shrink, as companies and countries focused more on flexibility than the immediate profitability of just-in-time inventories. delivered from remote locations. points around the globe.

For Europe, this structural transformation has meant bringing supply and manufacturing closer to European end markets. In order to maintain a competitive advantage in operating expenses, international companies have begun to locate manufacturing facilities in Morocco.

The same report stated that Rabat’s recent announcement that it would soon sign an agreement to build a “Giga Factory” to manufacture batteries for electric cars put Morocco at the forefront, becoming a leader in green transport in the Middle East and the North. from Africa.

The same source defends Morocco’s rise as a global hub for electric vehicle manufacturing, which is critical to the resilience of the Western supply chain, as it is to promoting carbon-neutral mobility to combat climate change.

The document highlighted that the focus on shortening supply chains to ensure the stability of European consumer markets has already fostered the rapid progress of the Moroccan automotive manufacturing sector and its development of more advanced manufacturing processes.

Morocco’s reserves of vital battery minerals are accelerating its entry into the field of electric vehicle manufacturing.

With an abundance of solar and wind energy resources, along with infrastructure, on a scale of already existing facilities to benefit from, Morocco has the potential to lead an environmentally friendly mobility revolution by boosting the production of electric vehicles using alternative energy.

Phosphate production, as well as other parts of the electric vehicle manufacturing chain in Morocco, must increasingly be powered by renewable energy, to ensure that eco-mobility vehicles are produced in a sustainable and climate-smart way.

The Phosphate Company covers 89% of its energy needs to produce phosphate and phosphorus fertilizers through cogeneration (reuse of exhaust energy to generate energy that is cleaner and cheaper than fossil fuels) and renewable sources; It eventually plans to cover 100% of its energy needs in this way, depending on gas and coal imports.

The report notes that Morocco’s Western partners should work with Rabat to move electric vehicle manufacturing in the country, to run on locally available solar and wind power resources, to improve supply chain flexibility, as well as to ensure that the manufacturing of eco-mobility vehicles is also environmentally friendly. .