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.



IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
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IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage

The International Monetary Fund (IMF) approved the third review of Sri Lanka's $2.9 billion bailout on Saturday but warned that the economy remains vulnerable.
In a statement, the global lender said it would release about $333 million, bringing total funding to around $1.3 billion, to the crisis-hit South Asian nation. It said signs of an economic recovery were emerging, Reuters reported.
In a note of caution, it said "the critical next steps are to complete the commercial debt restructuring, finalize bilateral agreements with official creditors along the lines of the accord with the Official Creditor Committee and implement the terms of the other agreements. This will help restore Sri Lanka's debt sustainability."
Cash-strapped Sri Lanka plunged into its worst financial crisis in more than seven decades in 2022 with a severe dollar shortage sending inflation soaring to 70%, its currency to record lows and its economy contracting by 7.3% during the worst of the fallout and by 2.3% last year.
"Maintaining macroeconomic stability and restoring debt sustainability are key to securing Sri Lanka's prosperity and require persevering with responsible fiscal policy," the IMF said.
The IMF bailout secured in March last year helped stabilize economic conditions. The rupee has risen 11.3% in recent months and inflation disappeared, with prices falling 0.8% last month.
The island nation's economy is expected to grow 4.4% this year, the first increase in three years, according to the World Bank.
However, Sri Lanka still needs to complete a $12.5 billion debt restructuring with bondholders, which President Anura Kumara Dissanayake aims to finalize in December.
Sri Lanka will enter into individual agreements with bilateral creditors including Japan, China and India needed to complete a $10 billion debt restructuring, Dissanayake said.
He won the presidency in September, and his leftist coalition won a record 159 seats in the 225-member parliament in a general election last week.