Morocco Plans to Set up EV Battery Gigafactory

Morocco is negotiating with electric vehicle battery manufacturers to set up a plant in the country to mesh with its existing automotive sector and cobalt output. (Reuters)
Morocco is negotiating with electric vehicle battery manufacturers to set up a plant in the country to mesh with its existing automotive sector and cobalt output. (Reuters)
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Morocco Plans to Set up EV Battery Gigafactory

Morocco is negotiating with electric vehicle battery manufacturers to set up a plant in the country to mesh with its existing automotive sector and cobalt output. (Reuters)
Morocco is negotiating with electric vehicle battery manufacturers to set up a plant in the country to mesh with its existing automotive sector and cobalt output. (Reuters)

Morocco is negotiating with electric vehicle battery manufacturers to set up a plant in the country to mesh with its existing automotive sector and cobalt output.

“We hope to sign a deal for the plant before the end of this year,” Industry Minister Ryad Mezzour said in an interview with Reuters on Thursday, but declined to name the companies.

He also did not say how much investment it would require, but referred to it as a “Gigafactory,” a term widely used for very big production facilities.

The planned factory for EV batteries will “offer a huge momentum for the local automotive sector” and will benefit from the availability of renewable energy and raw materials such as cobalt and phosphates in the country, he said.

Demand for such batteries is growing outside and within Morocco, where Citroen plans to double its production capacity within two years from 50,000 supermini electric cars, Mezzour noted.

Morocco is home to production plants of Renault and Stellantis with a combined production capacity of 700,000.

“We are targeting one million within next three to four years,” Mezzour said.

Exports by some 250 Moroccan automotive manufacturers and part makers topped the kingdom’s industrial exports over the past seven years, surpassing phosphate sales.

Up to May this year, Morocco’s automotive sector sales stood at $4.13 billion, up 24%.

The first- and second-best selling cars in Europe, Dacia Sandero and Peugeot 208, respectively, are both made in Morocco, Mezzour remarked.

He explained that in order to increase competitiveness in the face of China and India, Morocco plans to increase the rate of locally made parts in the cars it exports to 80%, up from 65% currently.

“The automotive and the aerospace industries are two drivers of industrial innovation in the country,” the Minister noted.

Mezzour further stated that the aerospace industry sales will exceed pre-COVID pandemic levels, as exports up to May rose to $877 million, up 61% from a year earlier.

On Monday, Collins Aerospace became the latest major player to join a list of global aerospace manufacturers, including Boeing and Airbus, that import Moroccan-made parts.

The deal, signed on the sidelines of Farnborough Airshow, will add $1 billion in revenue to the Moroccan aerospace suppliers across all spectrums of engine, cabin, fuselage and wing part.

During the same event, Morocco signed another deal with GAL Aerospace to build a $12 million cabin interior plant.

Now, the 140 aerospace industry plants in Morocco are able to build 43% of the components of a global plane, Mezzour explained.



Facing Market Pain, UK’s Reeves Says ‘Pragmatic’ China Ties Will Help Growth

British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)
British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)
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Facing Market Pain, UK’s Reeves Says ‘Pragmatic’ China Ties Will Help Growth

British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)
British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)

British finance minister Rachel Reeves, facing criticism for travelling to China during financial market turmoil at home, said on Saturday that "pragmatic and predictable" relations with Beijing would help boost economic growth and trade.

Under pressure from a sharp rise in British interest rates, Reeves defended her budget at the start of the two-day visit to China, where she is seeking to revive high-level economic and financial talks that have been frozen for nearly six years.

"The fiscal rules that I set out in my budget in October are non-negotiable, and growth is the number one mission of this government to make our country better off," Reeves told reporters at a Brompton bicycle shop in Beijing.

"That's why I'm in China to unlock tangible benefits for British businesses exporting and trading around the world to ensure that we have greater access to the second-largest economy in the world."

The rise in British government borrowing costs, due in part to a global bond selloff, prompted comparisons with the 2022 "mini-budget" crisis that forced then-Prime Minister Liz Truss out of Downing Street.

However, this week's market moves have been less sharp and there has so far been no evidence of the strain on institutional investors that forced the Bank of England into emergency bond purchases in 2022.

On trade, asked whether Britain would follow Washington and Brussels in imposing tariffs on Chinese electric vehicles, Reeves, who will be in Shanghai on Sunday, said: "We keep issues under review but we make decisions in our national interest."

British car manufacturers, "like Jaguar Land Rover, export substantially to Chinese markets, and we want to help them to grow."

After her bicycle shop visit, Reeves met Vice President Han Zheng, telling him it was "important to have open and frank dialogue in areas where we agree, but also in areas where we have different views."

'COMMON GROUND'

Her delegation, which includes Bank of England Governor Andrew Bailey, Standard Chartered Chairman Jose Vinals, and HSBC Chairman Mark Tucker, then met Chinese counterparts led by Vice Premier He Lifeng.

He urged British financial firms to expand renminbi services and promote deeper yuan internationalization, while inviting them to participate in green finance and the pension industry in China.

Reeves said she looked forward to China issuing its first overseas sovereign green bond in London this year.

Her visit follows a dialogue opened last year between Prime Minister Keir Starmer and President Xi Jinping, the first between the two countries' leaders since 2018.

Reeves told He that Russia's invasion of Ukraine, rising geopolitical tensions and climate change meant that they faced a much more challenging environment than when their predecessors last met.

"It is important to prevent economic leaps weakening our national security and economic resilience," she said, adding both she and He wanted to "find common ground" in this regard.

He said Beijing will work with London to ensure a fair, non-discriminatory business environment for each country's firms.

The approach adopted by Starmer's Labor government, elected in July, contrasts with that of the previous Conservative administration, which took a robust path to differences with China - particularly over human rights, Hong Kong and allegations of Chinese espionage.

Starmer has long described his desire to build a relationship with China that is "rooted in the UK's national interests" by boosting trade, a task that may become more difficult if US President-elect Donald Trump follows through on his threat to impose tariffs on all imports.

China is Britain's fourth-largest trading partner, accounting for goods and services trade worth almost 113 billion pounds ($138 billion).