Batteries for electric cars 400 billion dirhams of investment expected by 2030
The Ministry is counting on two major assets for Morocco to prevail. One is that the Kingdom has a very good competitive position in lithium batteries. At a time when the price per KWh is currently averaging 110 to 115 US dollars, factories in Morocco can produce lithium batteries at a unit price of 70 US dollars
Chinese firms are beginning to invest in Morocco’s lithium battery value chain. As announced (see our edition of Monday, April 1), BTR New Material Group is leading the way with a project to build a production unit for cathodes, an essential component of electric vehicle batteries, at an investment cost of 3 billion dirhams, which will eventually create 2,500 jobs. The plant is due to come on stream in 2026.
In the meantime, one should not be surprised to see other Chinese companies arriving in droves this year to invest in the Kingdom’s electric car battery value chain.
«We are working to build up a portfolio of 400 billion Dirhams (USD 40 billion) exclusively in the battery value chain by 2030», announced Ryad Mezzour, Minister of Industry and Commerce, at the Mobility Forum held in Rabat at the beginning of March. This means that, by this deadline, some 132 investors with the same commitment size as BTR New Material Group will be needed to reach the target set by the Department of Industry.
Will this be possible? In any case, the Department is counting on two major assets that Morocco can bring to bear. One of these, and by no means the least, is that the Kingdom has a very good competitive position in lithium batteries. Indeed, at a time when the price per KWh is currently averaging between US$110 and US$115, factories in Morocco can produce lithium batteries at a unit price of US$70. This represents a price difference of 36%, and a significant competitive advantage that Morocco can offer the world. « This attractiveness alone is enough to attract investors. In fact, it is the main reason why investors in general, and Chinese firms in particular, are lining up to open a lithium battery manufacturing plant in Morocco «, say the sources at the Ministry. The other key argument is that Morocco is a producer of both internal combustion and electric cars, a market which is set to expand rapidly in terms of volume in the very near future. And Morocco has the potential to export more than its competitors.
