Morocco is steadily consolidating its position as one of the world's emerging investment destinations for the electric vehicle (EV) industry, driven by a long-term industrial strategy that is enabling the country to move into higher value-added segments of global manufacturing, according to the World Investment Report 2026 released Tuesday by the United Nations Conference on Trade and Development (UNCTAD).
The report identifies Morocco among a new generation of countries attracting significant international investment in electric mobility, alongside Brazil, India, Saudi Arabia and Thailand, as global manufacturers diversify production and supply chains beyond traditional automotive hubs.
According to UNCTAD, Morocco's emergence in electric vehicle battery manufacturing is the result of more than two decades of sustained industrial policy rather than short-term investment incentives.
The report points to a series of strategic government initiatives, including the National Pact for Industrial Emergence, the Industrial Acceleration Plan and the 2022 Investment Charter, as key drivers behind the country's transformation into an export-oriented automotive manufacturing platform. These policies have supported the development of industrial zones, free-zone incentives, an expanding network of local suppliers and specialised workforce training, creating the foundations for more advanced manufacturing activities.
UNCTAD says these measures have equipped Morocco with the industrial capacity and skilled labour needed to accelerate the development of a battery gigafactory project in the Rabat-Salé-Kénitra region. The project, launched with an initial investment estimated at around $1.3 billion, could eventually expand to $6.5 billion, with planned production capacity rising from 20 gigawatt-hours (GWh) to 100 GWh. The expansion reflects Morocco's ambition to move beyond vehicle assembly and establish itself as a producer of battery cells, a higher value-added segment of the EV supply chain.
The report also highlights Morocco as one of the emerging global production platforms for clean technologies, benefiting from the ongoing restructuring of international supply chains and growing investment by multinational companies, particularly Chinese firms active in battery and electric vehicle manufacturing.
On foreign direct investment (FDI), UNCTAD reports that Morocco attracted $3.338 billion in FDI inflows in 2025, nearly doubling from $1.748 billion in 2024. The country's inward FDI stock reached $80.8 billion by the end of 2025, underlining its growing appeal to international investors.
Globally, the report says foreign direct investment rose by 6% in 2025 to $1.6 trillion, ending two consecutive years of decline. However, UNCTAD cautions that the recovery remains limited, fragile and uneven, with investment growth varying significantly across regions and sectors.
