Morocco's automotive industry, a cornerstone of its economy and the continent's largest car exporter to Europe, is undergoing a significant pivot towards electric vehicle (EV) manufacturing. This strategic shift is a direct response to the European Union's evolving regulatory landscape, including the 'Carbon Border Adjustment Mechanism' (CBAM) and rules of origin requirements under the EU-Morocco Association Agreement, which incentivize local production of EV components.
Major investments are fueling this transition. In 2025, Chinese battery giant Gotion High-Tech announced a €12.5 billion joint venture to build a massive electric vehicle battery plant in Morocco. This follows earlier moves by Stellantis and Renault to increase local EV part sourcing and production capacity for models like the Citroën ë-C3 and Dacia Spring.
Despite the EU's increasingly protectionist stance on green industries, exemplified by tariffs on Chinese EVs, Morocco's existing free trade agreements and proximity give it a crucial advantage. The kingdom aims to produce 1 million vehicles annually by 2030, with a growing share being electric, to solidify its role as a key supplier to the European market amidst the global energy transition.
