UK pushes for investment in Morocco’s minerals sector

The UK government has called on investors to capitalise on Morocco’s evolving critical minerals (CM) industry, highlighting business opportunities worth between £35 billion and £55 billion, as reported by the Moroccan government-friendly North Africa Post via GOV.UK on October 15th.

The British Foreign Office and the Department for Business & Trade published a report positioning Morocco as a strategically beneficial hub for CM processing.

Under the Growth Gateway programme presentation, created in collaboration with the Boston Consulting Group, the report explains that growth in Morocco’s critical minerals industry is driven by surging global demand for electric vehicles, low-carbon supply chains and renewable energy technologies.

The report stated that Morocco is an important partner for the EU and US battery markets, claiming that the country’s strong trade access, renewable energy capacity, and robust industrial infrastructure is the main reasons for investors seeking secure and sustainable mineral supply routes.

Morocco reportedly offers low-cost skilled labour, Special Economic Zones (SEZs) and targeted tax incentives, which could ultimately attract UK investors to expand into North Africa.

With easy accessibility to the country from Europe, Free Trade Agreements with both the EU and the US, and its presence in the US Inflation Reduction Act (IRA), Morocco might have acquired a competitive edge, according to a summary of the UK government report. 

The report states that Morocco is the sole African nation listed as a partner under the IRA, emphasising its position as the preferred processing hub for Western markets that were highly dependent on China for global supply chains.

The UK government report also specifies five investor-ready opportunities: green energy financing, project finance for midstream processing, long-term offtake agreements, black mass and scrap recycling, as well as tech deals with leading Moroccan organisations such as OCP and Managem.

With a domestic EV battery industry worth between £1.5 billion and £3 billion, Morocco could be emerging as a key partner in building low-carbon global supply chains. 

North Africa Post via GOV.UK, Maghrebi.org