Morocco strengthens its position as an emerging hub in the electric vehicle industry despite a weak domestic market.
European demand growth has propelled Morocco to play an increasing role in the electric vehicle manufacturing chain, according to a recent report from the International Energy Agency, which considers the kingdom a strategic platform for manufacturing batteries and electric vehicles aimed at export to Europe. This industrial shift is gradually reflecting on the local market, which saw a noticeable increase in electric vehicle sales in 2024, even though they still represent less than 1% of total sales.
The report noted that Morocco has not yet entered the ranks of the three largest global electric vehicle markets, yet it is regarded as an emerging destination attracting industrial investments in this field, alongside Southeast Asia and India. It emphasized that this industrial progress is occurring despite limited domestic demand, thanks to participation in global supply chains and manufacturing projects focused on export.
The report stated that over 60% of the new global battery production capacity is concentrated in advanced economies such as Canada, Europe, South Korea, and Japan, where these countries benefit from strong government support and high domestic demand. In contrast, Morocco is part of a group of emerging countries that hold more than 150 GWh of battery production capacity under development, enhancing its presence on the global industrial map.
The report highlighted that international dynamics, particularly U.S. policies, are reshaping the geographic distribution of investments in the battery sector. Currently, South Korean companies lead this sector in the United States, while a decline in market share for Japanese companies is anticipated, alongside a potential drop in investments from Chinese companies due to U.S. restrictions, even though the latter is driving about 75% of the global electric vehicle sales growth, thanks particularly to low-cost models suitable for emerging markets like Morocco.
