Morocco accelerates shift toward the electric vehicle value chain

Monday 03 - 10:45

By: Sahili Aya

Morocco accelerates shift toward the electric vehicle value chain

Morocco is accelerating its transformation into a strategic hub for the global electric vehicle (EV) industry, expanding beyond vehicle assembly to strengthen its position across the entire EV value chain. According to a recent analysis by ICEX, Spain's public agency for international trade and investment, the Kingdom is implementing an industrial strategy aimed at capturing higher-value manufacturing activities while reinforcing its role as a key supplier to European markets.

The report highlights Morocco's ambition to become one of the leading automotive production centers in the Mediterranean, supported by growing industrial integration, advanced manufacturing capabilities and increasing investment in electric mobility technologies.

Automotive sector remains Morocco's export powerhouse

The automotive industry continues to be Morocco's largest export sector. By the end of 2024, the industry had generated nearly €15 billion in export revenues, while accounting for approximately 33% of the country's total exports in 2025.

More than 90% of vehicles produced in Morocco are destined for international markets, with the European Union remaining the primary destination. Spain alone represents roughly one-fifth of the sector's exports, underlining the close industrial links between the two countries.

Focus shifts to higher-value electric mobility components

ICEX notes that Morocco's competitive strategy is evolving beyond labor costs and assembly operations. The country is increasingly targeting high-value segments associated with electric vehicle production, including battery manufacturing, advanced electronic components, power converters, inverters, high-voltage wiring systems and energy storage technologies.

This transition reflects a broader effort to position Morocco as an integrated manufacturing platform capable of supplying critical technologies required by the rapidly expanding EV market.

Building a more integrated industrial ecosystem

Strengthening domestic supply chains has become a central objective of Morocco's industrial policy. Authorities are aiming to increase the local integration rate of automotive manufacturing to 80% while expanding national production capacity to one million vehicles annually by 2030.

The country already benefits from a solid industrial base. In 2024, Moroccan factories produced more than 560,000 vehicles, supported by an installed annual production capacity of approximately 700,000 units. Production of electric and hybrid vehicles is expected to exceed 150,000 units in 2026, reflecting the sector's accelerating transition toward cleaner mobility.

Industrial clusters drive specialization

The report identifies two complementary industrial corridors supporting Morocco's automotive expansion.

The Tangier-Kénitra corridor serves as the country's principal vehicle assembly hub, hosting major automotive manufacturers and production facilities. Meanwhile, the Casablanca-Jorf Lasfar industrial axis has emerged as a center for intermediate components, metallurgy and materials essential to battery production.

This geographic specialization is expected to enhance supply chain efficiency while attracting additional investment in advanced automotive technologies.

Europe's energy transition creates new opportunities

According to ICEX, Morocco's industrial strategy is closely aligned with Europe's accelerating transition toward low-carbon mobility. As the European Union tightens environmental standards and expands demand for zero-emission vehicles, Morocco is well positioned to benefit from its geographic proximity, established manufacturing ecosystem and growing expertise in electric vehicle technologies.

The report concludes that these structural advantages could strengthen Morocco's competitiveness and deepen its integration into the global EV supply chain over the remainder of the decade.