Morocco holds around 70% of the world's known phosphate rock reserves – crucial for producing fertilisers and battery materials. This presents the country with a tremendous opportunity to become significantly wealthier.

The country has the world’s largest phosphate rock reserves, totalling over 50bn tonnes. This volume far exceeds that of any other country, with China estimated to have reserves of only 3.2bn tonnes. Phosphate rock is the primary raw material used to produce various phosphate compounds.

Major phosphate rock deposits are concentrated in the central region around Khouribga, about 120 km south of Casablanca in the Chaouia area; in the southern Oued Eddahab-Lagouira region near Boucraâ; and the central-western region around Youssoufia, roughly 80 km southeast of El Jadida in the Doukkala-Abda area. These regions are home to some of the most productive and extensive phosphate mines in the world.

Morocco also boasts significant reserves of other valuable minerals. The country is rich in minerals like lead, zinc and silver, contributing substantially to its mining sector. It is a leading exporter of lead and zinc concentrates, with mining operations concentrated in regions such as the Atlas Mountains. Additionally, Morocco has substantial reserves of barite and fluorite, used in various industrial applications. It also holds important deposits of copper, manganese and antimony, and has substantial gold mining activities. Furthermore, Morocco is a significant producer of gypsum and clay, essential for construction and industrial uses.

It is the world’s leading exporter of crude phosphate and the fourth largest exporter of fertilisers globally, according to the UN. In 2021, the North African country ranked 19th worldwide and first in Africa for silver exploitation, seventh worldwide and second in Africa for fluorite, third worldwide and first in Africa for barite, and 11th worldwide and third in Africa for cobalt.

For fertilisers, phosphate rock is processed into products such as phosphoric acid and various phosphate salts. These compounds are essential for plant growth and agricultural productivity. Morocco’s phosphate reserves play a critical role in global food security. The state-owned Office Chérifien des Phosphates (OCP) is a major force in the global fertiliser market, particularly in Africa, where it supplied 54% of all fertilisers in 2020.

With OCP investing $10bn in fertiliser production, Morocco's output reached 12m mt of fertilisers in 2023. The estimated value of Morocco's phosphate reserves – anything up to a staggering $15 trillion – underscores its importance to global agriculture.

For battery materials, phosphate rock is used to produce lithium iron phosphate (LiFePO₄), a key component in lithium-ion batteries for electric vehicles (EVs) and energy storage systems. The double significance of phosphate rock highlights Morocco's potential impact on the agriculture and EV industries.

China was the leading producer of phosphate rock in 2023, producing 90mn tonnes. Morocco – with 35mn tonnes of phosphate rock produced that year – is the second-largest global producer. Despite this, Morocco’s much larger reserves than China present a significant opportunity for it to improve its role in the worldwide phosphate supply chain, especially in light of the growing demand for battery materials.

The IMF estimates that the Moroccan economy expanded by 3% in 2023 and is forecasting a growth of 3.1% in 2024 and 3.3% next year. The overall size of the economy is projected to reach $152bn in 2024, and the country has 37.3mn inhabitants. Income per capita is $4,077 in 2024. Inflation stands at 2.1%, and the country has a general government gross debt-to-GDP ratio of 70% in 2024, reasonably high by African standards.  

Rabat, Morocco’s capital, rests along the shores of the Bouregreg river and the Atlantic Ocean. It has a population of 577,000. Casablanca is the country’s biggest city with 4.2mn inhabitants in its metro area. 

Mohammed VI has been King of Morocco since July 1999. Aziz Akhannouch has been Prime Minister since October 2021. 

The mining sector in Morocco, including copper and silver, represents 10% of Morocco’s GDP, with 90% coming from phosphates. It makes up around 20% of the country’s exports. In 2023, Morocco reported a 34% decrease in phosphate exports and its derivatives, including fertilisers, to MAD76bn ($7.6bn). The fall was mostly due to a decline in international fertiliser prices.

Investments in the mining industry have steadily increased, reaching $950m in 2022. The sector is responsible for most of the country's sea and rail freight.

On the Fraser Institute’s Investment Attractiveness Index 2023, Morocco was ranked second in Africa after Botswana. However, it was ranked 27th out of 86 jurisdictions worldwide. 

Morocco’s strategic location on the Atlantic Ocean and the Mediterranean Sea further supports its potential. The Tanger Med Port, near the Strait of Gibraltar, is Africa's largest port and ranks fourth globally for operational efficiency. This strengthens Morocco's ability to leverage its phosphate resources for the fertiliser and battery markets.

Moreover, in the Western Sahara region, the Bou Craa Mine – operated by OCP – stands out as one of the world's largest phosphate mining operations. Located in the southern part of the disputed territory, it produces a substantial portion of Morocco's phosphate rock. 

However, the mine's operations are mired in controversy owing to the ongoing political dispute over Western Sahara’s status. The region is claimed by both Morocco and the Sahrawi Arab Democratic Republic, which seeks independence. This dispute complicates mining activities and has attracted international scrutiny, adding to the complexities of the territorial conflict.

The Moroccan government wants to harness the country’s natural resources and strategic location to boost its manufacturing sector. The state would like to become a key player in the global battery minerals production and processing transformation, with major EV battery plants already announced. As the world’s ninth-largest producer of cobalt, Morocco also wants to take advantage of its cobalt reserves to support the supply chain for rechargeable batteries.

In March 2024, the country established its first industrial zone dedicated to EV battery production, the Jorf Industrial Accelerator Zone, with initial investments totalling $2.3bn. The 283-hectare industrial zone, located 100 km south of Casablanca, is expected to create 4,000 jobs and attract investments from companies like Chinese firm CNGR and Moroccan-based African private investment fund Al Mada. 

Meanwhile, mining deals continue apace. In July 2024, Critical Mineral Resources (CMR), a UK-based mining company, signed an exclusive option to acquire the Igli project, a high-grade silver and copper venture located in the Anti-Atlas region of Morocco. 

CMR says the Igli project has yielded promising results with grades of up to 912 grams per tonne of silver and 2.97% copper.

In the same month, Genius Metals, a Canadian exploration company, said it had entered into an option agreement with Société Bleida Mineral Resources to acquire a 100% interest in the BMR copper-gold prospect project. It covers a 9-sq km area, located southeast of Ouarzazate. 

Moreover, Morocco's judicial system is rooted in civil law, and heavily influenced by French legal traditions. In the mining sector, two principal regulators oversee operations and policy. The Ministry of Energy, Mines and Sustainable Development (Ministère de l’Energie, des Mines et du Développement Durable, MEMDD) is responsible for implementing government policies related to mining, managing national resources, and setting guidelines for exploration. 

Complementing this role, the National Office of Hydrocarbons and Mines (Office National des Hydrocarbures et des Mines, ONHYM) focuses on exploratory studies and the development and exploitation of mineral deposits.

Recent changes in Moroccan mining legislation reflect a strong commitment to modernisation and transparency. The sector underwent a significant overhaul with the introduction of Mining Law 33-13 in July 2015. This comprehensive legislation aimed to modernise the mining sector by streamlining regulations, improving transparency and enhancing environmental and social governance. It introduced measures to regulate exploration and extraction activities better, establish clearer licensing procedures and strengthen the rights of local communities affected by mining operations.

Further detailing and implementing these reforms, the April 2016 Decree provided specific regulations and guidelines for the practical application of Mining Law 33-13. This decree outlined the procedural aspects for obtaining permits, conducting environmental impact assessments and ensuring compliance with safety and environmental standards. The updated framework is designed to create a more attractive investment climate while ensuring that Morocco's mineral resources are managed efficiently and sustainably.

In 2021, Morocco's former Minister of Energy, Mines and Environment, Aziz Rabbah, presented the new Morocco Mining Plan 2021 to 2030. It introduced institutional and legislative reforms to modernise the mining sector, improve institutional efficiency and align the legal framework with the country’s new development ambitions. 

The ministry also outlined concrete strategic actions to ensure the plan's success. The development plan listed seven key strategies, starting with strengthening the National Office of Hydrocarbons and Mines’ role in the sector. The second was the call to develop the human skills and technical resources of Morocco's geology departments, including the opening of several new laboratories. Third on the list was government support for small businesses in the sector. 

One of Morocco’s key objectives is to transform mineral resources into high-value-added finished products. By turning Moroccan mining riches into expensive products for export, Morocco can emulate much of China’s success with even greater benefits, as China greatly depends on mineral imports for its production. 

Mining in Morocco faces several significant challenges, with environmental impact, water scarcity, infrastructure needs and other factors adding complexity to operations. The environmental footprint of mining, including phosphate rock extraction, can be considerable. Risks such as land degradation, water contamination and biodiversity loss often accompany these activities. 

Water scarcity is a critical issue in Morocco's semi-arid climate. The substantial water usage required for mining operations, especially in phosphate rock extraction and processing, can exacerbate the strain on already limited resources. 

Infrastructure and logistics present another major challenge. Transporting mined materials from extraction sites to processing facilities and ports requires significant investment in infrastructure, such as roads, railways and ports. Developing and maintaining this infrastructure, particularly in remote areas, demands ongoing management and substantial financing.

Geological and technical challenges also play a crucial role. Mining operations in Morocco often involve complex geological conditions. Variability in ore quality and depth can make extraction difficult and costly. 

Energy supply is also a concern. Mining operations are highly energy-intensive, and securing a reliable and cost-effective energy source can be challenging, though Morocco has big opportunities in solar power. 

Morocco has immense advantages: vast phosphate reserves, strategic access to global markets via the Mediterranean and Atlantic, abundant solar power and a skilled workforce. With these strengths, the country is well-positioned to become a high-tech battery cell manufacturer. With the right strategic vision and government effort, Morocco has a real chance to transform its economy and emerge as a leading global player in the green technology and fertiliser markets.