Spanish report: Morocco emerges as a strong competitor to Spain in the electric vehicle industry

By ALDAR/

The electric vehicle sector is undergoing a rapid transformation in North Africa, with Morocco emerging as an industrial hub that is increasingly attracting major investments in automobile and battery manufacturing.

According to a report published by the Spanish website “Ros Spin”, Morocco is now competing with Spain to attract international capital, benefiting from lower labour costs, its geographical proximity to European markets, as well as industrial and regulatory policies that help accelerate the implementation of major projects.

Over the past decade, Morocco has gradually moved from relying mainly on vehicle assembly activities to building a more integrated industrial ecosystem that includes electric vehicle components and battery manufacturing.

This transformation is strengthening the Kingdom’s position as an export platform to Europe and Africa, particularly as the European Union accelerates its transition towards electric vehicles and seeks to reduce its dependence on distant supply chains.

In this context, the project of Chinese company Gotion High-Tech in Kenitra stands out as one of Morocco’s major bets in the battery sector. The plant, in which Volkswagen Group holds a stake, has entered the pilot production phase with an investment of around €3.2 billion. It is expected to create approximately 3,000 direct jobs and supply European manufacturers, including Stellantis and Volkswagen.

Morocco’s appeal, however, is not limited to lower labour costs. The same report points to the Kingdom’s more flexible regulatory environment, as well as its access to renewable energy at competitive costs.

The country’s strategic location between the Atlantic Ocean and the Mediterranean Sea also helps reduce transportation times to European markets. At the same time, Moroccan ports, particularly Tanger Med and Nador West Med, are further strengthening the industrial sector’s ability to export and compete internationally.

The report adds that Moroccan ports have become increasingly important competitors to Spanish ports, particularly the Port of Algeciras, thanks to their proximity to Europe and lower transit costs. This gives Moroccan products greater room to compete in international markets.