Assahafa.com
UK Foreign Secretary David Lammy has remarked on Morocco’s high potential to become a leading player in the electric vehicle (EV) battery supply chain, spotlighting Africa’s opportunities for growth in global battery production.
Presenting a new report titled “From Minerals to Manufacturing: Africa’s Competitiveness in Global Battery Supply Chains” at a renewable energy reception in Lagos this week, , Lammy emphasized Morocco’s strategic positioning and production capabilities that could make it a valuable partner for Europe’s EV market.
The report provides an in-depth analysis of Africa’s potential to not only provide raw materials for EV batteries but to add value through manufacturing, positioning countries like Morocco as key suppliers to European markets.
Morocco, alongside Tanzania, was identified as one of the most promising sites for battery production in Africa.
The report estimates that Morocco’s production costs for lithium-iron-phosphate (LFP) batteries could be around $72 per kilowatt-hour (kWh) by 2030, closely aligning with European costs.
“African countries, particularly Tanzania and Morocco, could competitively produce and export LFP batteries to Europe by 2030 at USD 68-72/kWh,” the report states, projecting that these operations could generate $10-15 billion annually and create between 22,000 and 25,000 jobs.
According to Lammy, Morocco’s strong political stability, established manufacturing infrastructure, and duty-free trade agreements with the European Union give it a unique advantage in the region.
“Stable political economy, geographical proximity, duty-free exports to the EU/US, and raw material reserves position Morocco as a hub for battery manufacturing in Africa,” the report states, adding that Morocco is already attracting significant foreign investments to boost its battery production capabilities.
For Morocco to emerge as a competitive EV battery manufacturer by 2030, the report notes that “certain external factors would need to align,” including Europe’s drive to diversify supply chains and lessen reliance on Chinese imports, as well as EU agreements to avoid import taxes on African-made batteries.
Additionally, the report suggests that for Africa’s production hubs to thrive, local governments would need to introduce subsidies, and manufacturing zones would need favorable policies, such as 0% import duties for certain materials.
The report emphasizes that building gigafactories in African nations necessitates either creating a strong local market for producing active materials—currently only available in Morocco for cathodes—or sourcing battery materials from abroad.
Morocco’s growing automotive sector, which includes production plants for Renault and Stellantis, gives it a head start. These manufacturers have a combined capacity of 700,000 vehicles per year, providing Morocco with both the production experience and logistics infrastructure to support battery production.
In June, the Moroccan government signed an investment agreement with China’s Gotion High Tech to build the country’s first EV battery gigafactory.
The $1.3 billion project, set to begin with a production capacity of 20 gigawatt-hours (GWh), is expected to expand up to 100 GWh, which would represent one of Africa’s largest battery production facilities.
The report also outlines that “if a plant were to serve the EU EV market, it could be located close to an OEM manufacturing site exporting to the EU, as EV batteries need to be designed and specific to each car.”
Citing Morocco as a prime location due to its automotive expertise and strategic geography, the report highlights that by 2030, Morocco will be the only African country with cathode production capabilities, which are essential for battery manufacturing.
This advantage makes it more cost-effective to produce batteries locally than to import components from other parts of the world.
Although production costs in Morocco are higher than in China, the report concludes that Morocco, along with Tanzania, “would remain more competitive than the US, Europe, and Indonesia.”
This advantage is attributed to lower operational costs, such as labor and electricity, and the ability to source Bill of Materials (BoM) at favorable rates through Special Economic Zones (SEZ), which enable the import of materials from China at a 0% duty.
Source: Morocco word news
