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.



Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
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Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA

The Saudi Export-Import Bank (Saudi EXIM) hosted the Berne Union's Country Risk Specialist Meeting, providing a platform for experts and thought leaders in risk management from the export credit community.
At the meeting, which took place from November 19 to 21 in Riyadh, the attendees exchanged best practices to better protect the industry amid shifting global dynamics.
According to a statement issued by the Saudi EXIM on Saturday, the event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions.
By strengthening institutional resilience, the industry is ready to turn global economic challenges into opportunities for economic prosperity, said the statement, adding that it played a crucial role in advancing global trade, strengthening international cooperation, and developing credit solutions that empower export activities while controlling risk, SPA reported.
According to the statement, discussions centered on critical risks impacting international trade and the global economy, such as debt sustainability and geopolitical tensions, along with innovative approaches to risk modelling. Participants also explored the global shifts in infrastructure, energy and critical minerals sectors, and were given an overview of Saudi Arabia's National Industrial Strategy, which focuses on economic diversification through investments, developing new sectors, and promoting local industries.
In his opening remarks, Saudi EXIM CEO Eng. Saad bin Abdulaziz Al-Khalb said the meeting is an ideal platform to address risks impacting global economic decision making.
He stated: "Through such meetings, we can turn challenges into strategic opportunities and enhance our resilience in an ever-changing world. At Saudi EXIM, we remain committed to enabling companies by offering expert financial and non-financial solutions to navigate risks effectively."
He also said that "at Saudi EXIM, we place great emphasis on risk management. In alignment with the main objective of this meeting, I am pleased to announce the completion of our independent country risk model, which is supported by advanced modelling tools and machine learning. This model will provide country ratings and predictions of default risks. We look forward to collaborating with our partners in other export credit agencies to exchange knowledge and expertise, and to strengthening our risk management functions with greater responsibility and effectiveness."
Associate Director at Berne Union Eve Hall said: "The global risk landscape today is highly volatile and highly interconnected. As we navigate our way around the ongoing transformations connected to energy transition and shifting industrial strategies, the traditional concept of 'country risk' is becoming increasingly complex. Our industry excels at understanding, quantifying and pricing these risks, and by bringing together this community of experts for technical exchange the Berne Union is able to help support the development of the industry as a whole. The initiatives announced by our colleagues at Saudi EXIM, making use of new technology in risk analysis, provide a fantastic example of where collaboration in this field can be effectively applied."
The statement disclosed that Saudi EXIM's membership in Berne represents a significant strategic step, and is consistent with the Kingdom's commitment to expanding collaboration and integration in the global economy.
This is achieved by building partnerships with leading institutions to address the challenges facing the export credit sector. It also aligns with the bank's goal of developing the export of national products and services through partnerships with national and international financial and funding organizations.
Berne Union works with global trade organizations to encourage the adoption of best practices in export credit insurance, and to cooperate in maintaining the stability of global trade.
Saudi EXIM, a development bank under the National Development Fund, contributes to diversifying the Kingdom's economic base by improving the efficiency of non-oil export ecosystems, bridging financial gaps, and minimizing export risks. This plays a role in helping the non-oil national economy grow, in line with Vision 2030.