Morocco's Ascent as an Emerging EV Manufacturing Powerhouse Raises Concerns in Spain

Morocco's strategic geographical location, affordable labor force, abundance of raw materials, and renewable energy resources have positioned the North African nation as an emerging powerhouse in the electric vehicle (EV) manufacturing industry, raising concerns among its European neighbors, particularly Spain.

After expressing apprehensions over Morocco's recent military acquisitions, Spain now faces a new challenge as its southern neighbor positions itself to potentially attract a significant portion of the EV manufacturing industry. According to reports from El Debate, Morocco is leveraging its strategic advantages to gain a privileged position in the new global automotive order ushered in by the electrification of transportation.

One of Morocco's most significant advantages is its proximity to Europe, separated by a mere 15 kilometers of sea, making it an attractive location for automakers seeking to establish manufacturing facilities close to their target markets. Additionally, the country boasts an abundance of cheap renewable energy sources, primarily solar power, which aligns with the sustainability goals of the EV industry.

Moreover, Morocco's wealth of raw materials required for battery production, such as cobalt—where the country is Africa's top producer and ranks 10th globally—further enhances its appeal as a manufacturing hub. Complementing these resources is the availability of low-cost labor. Moroccan auto workers earn between 250 and 1,000 euros per month, with an average salary of 500 euros, and face less stringent labor conditions and time off compared to Europe.

European automakers have already recognized the potential of Morocco, with Renault and Stellantis operating factories in the country for years. However, the real game-changer is the recent confirmation from five Chinese battery manufacturers of their plans to establish battery plants in Morocco, producing batteries for electric cars and accessories.

Morocco is well aware of the potential impact of the tariffs Europe is threatening to impose on Chinese cars, which could trigger automakers to establish EV factories in Morocco. This would allow them to avoid the tariffs while benefiting from labor conditions more similar to those in China than in Europe.

The North African kingdom has been steadily building towards this moment. Automotive exports now surpass agricultural goods as Morocco's top export sector. King Mohammed VI has made substantial infrastructure investments in highways, roads, trains, and ports to facilitate the ramp-up of production at existing auto factories.

With its abundant cobalt resources, affordable labor force, renewable energy sources, and proximity to Europe, Morocco has emerged as a formidable competitor poised to disrupt the EV supply chain. This silent ascent has raised concerns in Spain, as the country fears losing out on the manufacturing of thousands of EVs as automakers eye Morocco as an attractive production base on Europe's doorstep.