Morocco challenges Spain in the race for electric vehicle manufacturing

Thursday 13 August 2026 - 15:21

By: Azzat Manal

Morocco challenges Spain in the race for electric vehicle manufacturing

Morocco is rapidly strengthening its position in the global automotive industry as it moves beyond traditional vehicle assembly toward electric vehicles, batteries and other advanced components.

The Kingdom is attracting growing interest from international investors thanks to competitive production costs, a skilled workforce and its strategic location close to Europe. Its position between Europe, Africa and the Atlantic and Mediterranean markets also gives Morocco an important advantage for automotive logistics.

A major development is the planned battery plant led by Chinese company Gotion High-Tech in Kenitra. The project, valued at several billion euros, is expected to create thousands of direct jobs and could strengthen Morocco’s role in the European electric vehicle supply chain.

Morocco’s port infrastructure, particularly Tanger Med, is another key asset. Efficient maritime connections allow manufacturers to move vehicles, components and raw materials between Morocco and European markets relatively quickly.

The country is also seeking to capitalize on renewable energy and its access to important mineral resources. As European manufacturers face increasing pressure to reduce the carbon footprint of their production chains, Morocco’s renewable energy potential could become an additional investment advantage.

Spain, however, remains a powerful competitor. It is one of Europe’s largest vehicle-producing countries and has a well-established industrial ecosystem involving major manufacturers such as Volkswagen, Stellantis, Renault, Mercedes-Benz, Ford and Iveco.

Spain is also investing heavily in battery production. Projects such as Volkswagen’s PowerCo battery plant in Sagunto and Stellantis’ planned facility in Zaragoza with CATL are expected to reinforce the country’s position in Europe’s electric vehicle industry.

The competition between Morocco and Spain is therefore likely to intensify as Europe accelerates its transition toward electric mobility. However, the two countries could also become complementary partners within the same regional supply chain.

For Morocco, the challenge is no longer simply to attract factories but to develop greater local technological expertise, skilled employment and value-added activities. Spain, meanwhile, must preserve its industrial advantages while reducing production costs and accelerating its electric transition.

The future of the automotive industry in both countries will depend increasingly on batteries, clean energy, logistics, technology and innovation. Morocco’s rapid expansion could significantly strengthen its position as a competitive automotive hub linking Europe and Africa.