According to a Financial Times analysis, Chinese investments are accelerating Morocco's emergence as a key industrial hub for electric vehicles (EVs), coinciding with the European Union's ongoing definition of Morocco's industrial status in its future trade framework. The report highlights that Chinese capital is flowing into Morocco's automotive sector, particularly in battery and EV manufacturing, leveraging the country's free trade agreements with the EU and the US.
Morocco has become a strategic location for Chinese companies seeking to access Western markets while avoiding tariffs. The North African kingdom already hosts major Chinese investments in battery gigafactories, such as those by Gotion High-Tech and CNGR Advanced Materials, which are part of a broader trend of Chinese EV supply chain expansion overseas.
The EU is currently reviewing Morocco's industrial status as part of its updated trade and investment framework, which could affect how Moroccan-made goods, including those from Chinese-owned factories, are treated in the European market. This comes as the bloc seeks to reduce dependence on Chinese supply chains while maintaining trade ties with Morocco.
Data from the Moroccan Investment and Export Development Agency (AMDIE) shows that Chinese foreign direct investment in Morocco reached record levels in 2025, driven by the EV sector. However, specific figures for 2026 are not yet publicly available as of May 31, 2026.
