Morocco is reportedly on the verge of joining the world’s top five countries capable of producing the whole value chain for electric vehicle batteries, according to Moroccan Industry and Trade Minister Riad Mezzour.
He revealed that the country already produces 40% of the value of batteries locally, with plans to complete the entire chain, including precursor materials, cathodes, anodes, separators, and battery-management systems, by the end of next year. This move highlights Morocco’s serious investment in electrification infrastructure, potentially reshaping regional supply chains for EV components.
Morocco and Saudi Arabia: Partners, Not Rivals
Speaking at a UN Industrial Development Organization conference in Riyadh, Mezzour emphasized that Morocco does not see Saudi Arabia or Egypt as competitors, but rather as partners in broader regional integration. He added that the actual competition lies with India and China.
“We see collaboration with Saudi Arabia as an opportunity to strengthen regional integration rather than a rivalry,” Mezzour said.
This statement underlines Morocco’s deliberate push for cooperation, making Morocco-Saudi automotive projects a potential reality rather than a distant ambition.
Expanding Cooperation Beyond Automotive
Mezzour also revealed that discussions are underway to broaden the scope of cooperation with Saudi Arabia beyond batteries and vehicles. Sectors under consideration include:
- Pharmaceuticals
- Furnishings
- Phosphates
The automotive industry, however, remains the backbone of this vision. Morocco currently produces around 1 million cars per year, with a local integration rate of 69%. Mezzour projects production capacity rising to 1.5 million vehicles, then 2 million cars before 2030, supported by ongoing industrial investments and expanded supplier networks.
Additionally, Morocco claims production costs lower than China’s and close to India’s, with ambitions to raise local integration to 80% by 2030, further enhancing competitiveness.
Implications for the Middle East Automotive Market
For the regional auto industry, these developments could signal significant shifts in vehicle sourcing, assembly, and supply chains.
A complete EV-battery supply chain in Morocco could translate to:
- More competitively priced EVs or battery components for Gulf countries, including Saudi Arabia
- Expanded trade routes and investment opportunities
- Potential local assembly or re-export channels across the region
For manufacturers, dealers, and parts suppliers, Morocco-Saudi cooperation may mark a turning point toward integrated, cost-efficient supply networks, potentially reshaping the Middle East’s automotive landscape.
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