Morocco’s Critical Raw Minerals: A Strategic Opportunity or a Geopolitical Battlefield?

Morocco’s critical raw minerals have become one of the most discussed topics in global economic and political circles. With vast reserves of phosphate, cobalt, and other essential materials, the country is increasingly positioned at the center of industrialization debates and geopolitical struggles. The question remains: are these resources a genuine opportunity for Morocco’s long-term development, or are they turning the nation into a battlefield where China and the West compete for dominance?

Morocco’s Abundant Mineral Wealth

Morocco’s critical raw minerals represent a strategic advantage in today’s world economy. The country controls nearly 70% of global phosphate reserves, making it an indispensable player in the fertilizer market and global food security. Beyond phosphate, Morocco is the ninth-largest producer of cobalt and holds the eleventh-largest reserves worldwide. These minerals are vital for the production of electric vehicle batteries and renewable energy technologies.

In addition to cobalt and phosphate, Morocco also has reserves of copper, nickel, manganese, barite, and fluorine. Collectively, these resources provide the country with the potential to become a leading supplier in industries tied to the green energy transition. This combination of abundance and variety makes Morocco’s critical raw minerals particularly attractive to global powers.

The Geopolitical Stakes of Critical Raw Minerals

The rising importance of Morocco’s critical raw minerals cannot be understood without analyzing the geopolitical rivalry between the United States and China. As electric vehicle production accelerates, both powers are competing to secure stable supply chains for the minerals that drive these technologies. Morocco’s unique position as the only African country with a free trade agreement with the United States makes it especially valuable in this context.

China, aware of restrictions under the US Inflation Reduction Act, has strategically invested in Morocco to maintain its access to the US market. Meanwhile, Western countries view Morocco as an essential partner to diversify their supply chains away from Chinese dominance. This tug of war illustrates how Morocco’s critical raw minerals are no longer just economic assets but also geopolitical tools.

China’s Expanding Footprint in Morocco

Over the past two years, several Chinese companies have invested heavily in Morocco’s critical raw minerals and electric vehicle battery industries. Corporations such as CNGR, Gotion High-Tech, BTR New Material Group, and Shinzoom have established projects to explore, mine, and process cobalt, lithium, and other strategic minerals.

These ventures have been celebrated in official Moroccan media as a step toward industrialization and modernization. Proponents highlight promises of technology transfer, job creation, and green growth. Yet, the historical experience of Morocco’s industrial policies suggests a more complex reality that may not fully deliver on these promises.

Morocco’s Industrial Policy and Its Limitations

Since 2005, Morocco has implemented policies such as “Morocco Global Industry” to attract foreign investment in automotive and aerospace manufacturing. The establishment of industrial free zones in Tangiers and Kénitra drew companies like Peugeot, Renault, and Stellantis, boosting Morocco’s share of manufactured exports.

While these policies attracted foreign capital, they failed to ensure meaningful technology transfer or sustainable human development. Foreign firms benefited from tax exemptions, profit repatriation rights, and turnkey projects that left Moroccan contractors confined to secondary roles. As a result, Morocco became a manufacturing hub without developing true national industrial autonomy.

The Risks of Repeating Past Mistakes

The new wave of Chinese investments in Morocco’s critical raw minerals appears to replicate this pattern. Jobs created are often precarious, based on short-term contracts with limited worker protections. Union activities in export processing zones remain repressed, reducing workers’ ability to negotiate better conditions. Communities near mining operations face displacement, environmental degradation, and limited inclusion in industrial planning.

Instead of becoming a tool for inclusive development, Morocco’s critical raw minerals risk being exploited in a way that enriches foreign investors and local elites, while ordinary citizens experience little improvement in their livelihoods.

Environmental Challenges and the Green Transition

The Moroccan government frequently showcases solar and wind projects to present itself as a leader in the green transition. However, the focus remains on serving external markets rather than meeting domestic needs. The mining and battery industries, despite being linked to clean energy, often perpetuate extractive practices that harm ecosystems and local communities.

Morocco’s weak regulatory framework further complicates this picture. Environmental permits are granted quickly compared to stricter European standards, making the country attractive for investors seeking to cut costs. This dynamic risks transforming Morocco into a destination for environmentally damaging projects masked under the language of sustainability.

Economic Dependence and Structural Vulnerabilities

Despite its mineral wealth, Morocco remains a relatively small economy heavily dependent on agriculture and extractive industries. This structural weakness limits the country’s ability to dictate terms with foreign partners. Instead, Morocco often adapts to shifts in the global economy by aligning with stronger powers, reinforcing dependency rather than achieving sovereignty.

Without a long-term strategy that prioritizes national development, Morocco’s critical raw minerals could become a curse rather than a blessing, repeating the classic resource dependency trap.

The Role of Global Supply Chains

Global demand for electric vehicles and renewable technologies ensures that Morocco’s critical raw minerals will remain highly sought after. Yet the integration of Morocco into global supply chains has so far concentrated benefits outside the country. Multinational corporations capture profits while Moroccan workers and communities face the costs of extraction.

This imbalance underscores the need for policies that increase local value addition, ensure technology transfer, and protect communities from exploitation. Without such measures, Morocco risks remaining a passive participant in supply chains dominated by global powers.

Alternative Paths for Industrialization

To transform its critical raw minerals into genuine tools of development, Morocco must reconsider its industrial policies. State-led initiatives, rather than exclusive reliance on private and foreign investors, could foster sustainable industrialization. Public sector leadership in mining and energy could ensure that profits are reinvested into national development rather than expatriated abroad.

In addition, fostering regional cooperation in North Africa and across Africa could prevent the destructive “race to the bottom” for foreign investment. By coordinating strategies, countries in the region could strengthen bargaining power and reduce dependence on external powers.

Social Justice and Inclusive Development

Morocco’s critical raw minerals should not only serve industrial and geopolitical ambitions but also address pressing social needs. Investments in education, healthcare, and infrastructure can ensure that communities directly benefit from resource wealth. Empowering local communities in decision-making processes would reduce conflicts and foster trust between citizens and the state.

Achieving inclusive development requires confronting inequalities and ensuring that Morocco’s industrialization does not merely enrich elites while leaving the majority behind.

The Future of Morocco’s Critical Raw Minerals

Morocco stands at a crossroads. Its critical raw minerals offer a unique chance to reshape the country’s economic trajectory, yet they also expose Morocco to geopolitical rivalries and extractive practices that undermine sovereignty. Whether Morocco can turn this opportunity into lasting industrialization will depend on the choices made by policymakers today.

The outcome will not only shape Morocco’s economy but also influence its role in the global order. If managed wisely, Morocco’s critical raw minerals could support national transformation. If mismanaged, they risk deepening dependency and inequality.

Conclusion: Between Opportunity and Battlefield

Morocco’s critical raw minerals embody both promise and peril. On one hand, they can fuel industrialization, generate jobs, and place Morocco at the heart of the global green transition. On the other hand, they risk being reduced to pawns in a larger geopolitical struggle between China and the West. The path Morocco chooses will determine whether these resources become a foundation for sovereignty and development or another chapter in the story of dependency.

For more insights into sustainable resource management and global policy debates, visit Chatham House.

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