Morocco’s EV Powerhouse

Jun 1, 2023 The Buzz Markets

In this buzz: Morocco, a hub for EV battery production; Chinese battery maker Gotion; Lucid Group’s $3 billion stock offering and a bit more…

Chinese EV battery maker, Gotion, is eyeing Morocco as a potential spot to set up a factory, with a cool $6.3 billion investment in the mix. The government of Morocco and Gotion High Tech are exploring the idea of establishing an electric vehicle battery plant in the kingdom, but no firm decision has been made yet. If it happens, the factory could have a massive production capacity of 100 gigawatts. Morocco’s automotive and renewable energy sectors, along with access to raw materials like cobalt and phosphates, make it an attractive destination for large-scale EV battery factories.

Morocco is already home to production plants for automakers like Renault and Stellantis, and the country’s demand for EV batteries is on the rise. Last year, the automotive sector took the crown as Morocco’s top industrial export, racking up an impressive 111 billion dirhams ($11.1 billion), a 33% increase from the previous year.

With the buzz around EVs growing, Morocco is revving up for an electrifying future.

Meanwhile,
… luxury electric vehicle maker Lucid Group is planning to raise approximately $3 billion through a stock offering, with a significant portion coming from Saudi Arabia’s Public Investment Fund (PIF). The PIF, which already owns over 60% of Lucid, has agreed to purchase 265.7 million shares in a private placement worth around $1.8 billion. Lucid also plans to raise funds through a public offering of 173.5 million shares of common stock.

❗The additional funds are crucial for Lucid as it faces mounting losses and tight cash reserves amid recession fears and intense competition in the EV market. The company’s cash and cash equivalents dropped to $900 million by the end of the first quarter, prompting the need for capital infusion.
→ While Lucid faces challenges in a competitive market, the support from Saudi’s PIF and potential investments from ESG-focused investors will provide a lifeline for the company.