Casablanca – LeapMotor, a leading Chinese electric vehicle (EV) manufacturer, is considering Morocco as a key location for a new industrial facility following the suspension of its planned production project in Poland. This shift is driven by the escalating trade tensions between China and the European Union, which have prompted a reevaluation of the viability of establishing manufacturing plants in Eastern Europe.
The Chinese automaker, which had initially partnered with Stellantis for its European expansion, faced challenges as the EU increased tariffs on Chinese EV imports. These tariffs, aimed at protecting European manufacturers, have led to concerns over the profitability of such projects in Europe. In response, the Chinese government has advised its companies to explore investment opportunities outside the more protectionist European markets, opening the door for countries like Morocco to step in as viable alternatives.
Why Morocco?
Morocco has steadily positioned itself as a major player in the global automotive industry, particularly in the field of electric mobility. The country’s rapid development of its automotive ecosystem, including modern infrastructure, competitive free trade zones, and a stable political environment, makes it an attractive destination for foreign investment.
The strategic location of Morocco, with its proximity to European markets and access to both African and American markets through free trade agreements, adds significant value. The nation’s strong logistics network, including the port of Tanger Med, one of the largest in the region, allows for efficient transport of goods to global markets, bypassing EU tariffs on direct Chinese imports.
In addition to its geographic advantages, Morocco is rich in natural resources, including lithium, cobalt, and copper—key materials for EV battery production. This access to critical raw materials reduces production costs and further strengthens Morocco’s appeal as a hub for battery manufacturing.
A growing industry with international backing
Morocco’s growing reputation in the electric vehicle sector is evidenced by a series of major international investments. Chinese companies have already begun to invest heavily in the country’s battery production capabilities. Notable among these is Gotion High Tech’s $1.3 billion investment in a gigafactory set to begin production in 2026, which will bolster Morocco’s capacity to meet global battery demand.
Other Chinese manufacturers, including Hailiang and Shinzoom, have committed nearly $1 billion to copper and anode production projects, while BTR New Material and CNGR Advanced Materials are also expanding their presence in Morocco with plans for cathode and battery production facilities.
These investments are set to enhance Morocco’s role as a central player in the global EV supply chain, making it an increasingly attractive destination for automakers like LeapMotor.
The road ahead
LeapMotor’s potential investment in Morocco is poised to further accelerate the country’s transition to a global leader in electric mobility. If the plan moves forward, it could generate significant economic benefits, including the creation of thousands of jobs and the development of cutting-edge technology in battery production. Morocco’s ability to leverage its natural resources and its favorable business environment makes it an ideal location for LeapMotor to scale its production and meet the growing demand for electric vehicles worldwide.
While challenges remain, including the need for specialized infrastructure and a skilled workforce to meet the demands of advanced EV manufacturing, Morocco has proven its ability to overcome such hurdles in the past. With continued government support and international partnerships, the Kingdom is poised to emerge as a key player in the global EV market.
LeapMotor’s decision to explore Morocco is a clear indication of the shifting dynamics in the electric vehicle industry, with Morocco emerging as a top contender in the race to dominate the green mobility sector.
