The Growing Importance of Kenitra in the Automotive Sector
Morocco's automotive industry is rapidly emerging as one of the most developed sectors in Africa, showcasing significant growth in investments relating to components, equipment, and batteries. This expansion is crucial for enhancing the industrial value chain and solidifying the industrial hubs within the Kingdom. Notably, in late September 2026, PowerCo, a subsidiary of the German automotive giant Volkswagen, and the Chinese company Gotion High-Tech announced plans to establish a joint venture in Kenitra. This venture aims to produce cathode materials for lithium iron phosphate (LFP) batteries used in electric vehicles, emphasizing the strategic position of Kenitra within Morocco's automotive landscape.
Kenitra: A Central Industrial Hub
According to the 2025 edition of the Moroccan Industry Barometer, the Rabat-Salé-Kenitra region accounted for 29% of the Kingdom's automotive industry revenue in 2024, ranking behind the Tanger-Tétouan-Al Hoceïma region (53%) and ahead of Casablanca-Settat (14%). This status is attributed to the high density of integrated industrial zones and the continuous expansion of automotive ecosystems. The region generated approximately 101 billion dirhams (around USD 10.3 billion) in industrial revenue in 2024, reflecting a 6.6% year-over-year growth. Over the period from 2021 to 2024, this figure nearly doubled, demonstrating the region's robust industrial framework.
Furthermore, the automotive sector plays a pivotal role in regional employment, representing nearly half of the industrial jobs in Rabat-Salé-Kenitra. However, the Barometer noted a slight decline of 1% in automotive employment in 2024, while other industrial activities, such as mechanical and metallurgical industries (+25.6%), plastics (+14.6%), and chemistry (+9.1%), experienced growth. This industrial diversity is essential as it allows the automotive sector to thrive within a broader ecosystem that includes mechanical, metallurgical, and chemical industries, which are all integral to its supply chains.
Moreover, the investment dynamics accompanying the growth of the Moroccan automotive sector contribute to Rabat-Salé-Kenitra's favorable positioning. Nationally, investments in the automotive sector reached 15.7 billion dirhams in 2024, a significant increase from 8.1 billion in 2021, marking nearly a 94% rise during this period. The Barometer attributes this surge to the expansion of assembly units, the arrival of new suppliers, and the development of advanced infrastructure related to cutting-edge technologies, particularly in batteries and electronic components. Although the report does not specify the distribution of these automotive investments across regions, it indicates that Rabat-Salé-Kenitra enjoys a strong investment momentum across the entire industrial sector, with investments totaling 6.4 billion dirhams in 2024, reflecting a 27.1% increase year-over-year.
The project involving Volkswagen and Gotion fits within this already significant industrial framework. By producing cathode materials for LFP batteries in Kenitra, these companies will add another link to the industrial activities associated with the automotive sector. Hence, Kenitra's significance is evolving beyond mere traditional production. Its primary advantage lies in the combination of a well-established ecosystem, integrated industrial zones, a diverse industrial fabric, and sustained investment dynamics, positioning it favorably for future advancements in electric vehicle technologies.
As reported by agenceecofin.com.
