Morocco's developing status as EV manufacturing hub sparks worry in Spain

Morocco's developing status as EV manufacturing hub sparks worry in Spain
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Wednesday 22 May 2024 - 12:49

The Spanish news outlet El Debate raised concerns in a new report about Morocco’s electric car manufacturing sector, potentially drawing manufacturing away from Spain.

Calling it the “Silent Threat”, Spanish media stated that “Morocco is playing its cards close to its chest to secure a privileged position in the new global automotive order brought about by electrification.”

The same source identified several key advantages that position Morocco well in the electric vehicle industry.

These include its strategic location, an abundance of cheap renewable energy sources, particularly solar power, rich deposits of raw materials essential for battery manufacturing, and a readily available workforce with competitive labor costs.

European automakers, including Renault and Stellantis, have long since embraced establishing operations in Morocco, where they have been running factories for years.

It also reported that Stellantis CEO Carlos Tavares sees Morocco as a potential manufacturing hub, along with other destinations like Hungary and Poland, while Renault remains pleased with its Tangier and Casablanca plants, where it produces nearly all Dacia models.

El Debate also hinted that Chinese battery manufacturers are establishing factories in Morocco, potentially triggered by EU tariffs on Chinese cars.

It said that Morocco’s labor regulations resemble China’s, making it an attractive location for Chinese manufacturers to build electric cars and avoid EU tariffs.

The same source highlighted King Mohammed VI’s infrastructure investments in highways, railways, and ports to support the increased production at existing factories.

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