Essential components for many industries, from energy to automotive and defense, rare earths are considered crucial to the sovereignty of many nations. China dominates the rare earths industry, accounting for 70% of global production and 90% of refining.

On October 9, Beijing announced new restrictions on the export of this strategic resource, even planning to tighten controls on rare earth technologies by making the conditions for granting export licenses more complex. These government announcements caused a stir in Western countries, which are heavily dependent on China in this field.

Three weeks later, on October 30, Donald Trump met Xi Jinping in South Korea. The two heads of state drew up an initial framework agreement: Beijing agreed to suspend the implementation of this export licensing scheme for rare earths and essential magnets, while Washington waived its right to impose 100% tariffs on Chinese imports. U.S. Treasury Secretary Scott Bessent subsequently announced that he hoped the agreement would be concluded by Thanksgiving, celebrated in the U.S. on November 27.

A future challenge for Morocco

In Morocco, these metals are used in particular by the electric automotive industry, with the forthcoming launch of the electric battery gigafactory in Kénitra, supported by the Sino-European group Gotion High-Tech. Initially, this mega-plant should produce 20 gigawatt-hours (GWh) of batteries and create 17,000 jobs, thanks to an initial investment of 12.8 billion dirhams (MMDH). Eventually, the Group hopes to reach a capacity of 100 GWh with a total investment of 65 billion dirhams by 2026.

The economic benefits of this project should be substantial, even if they are not yet tangible, with production scheduled to start at the end of 2026. So the question is: will Moroccan industry be affected if China makes it even harder to export rare earths?

Strategy consultant Anas Abdoun is reassuring. Despite their importance, rare earths do not currently represent a vital issue for the country, he assures Telquel: « In our industrial value chain, there is not yet a fundamental need for rare earths. »

He goes on to emphasize the opportunity that rare earths represent for the Kingdom. « Rare earths in Morocco are more of an interesting resource in terms of investment potential. Today, Morocco is not a major importer of rare earths for industrial production. Because these metals are important for the high-tech aeronautics industry, with semiconductors, electronic chips and graphics cards, which are not produced in Morocco, » he adds.

And what about a year from now, when the gigafactories are launched? The expert admits that tighter Chinese restrictions on rare earths could have an impact on this emerging sector. « When you say gigafactory, you say rare earths, so we’re going to have to deal with China, » says Abdoun, who even refers to it as a « non-issue, » because whether in Morocco or not, « everyone’s going to have to deal with China. »

« When China talks about controlling exports, rare earths or its derivatives, it’s clearly targeting the United States. It’s a race for strategic domination, » Abdoun added. For the consultant, the main industry affected by rare earth export restrictions is artificial intelligence, followed by military high-tech and aeronautics.

« In China, as in the United States, there are the best research centers and researchers. It’s a race where no one has the advantage over the other. The only difference? To obtain this computing power at server level, you need rare earths. And China’s got it, » he explains.

So, when China announces that it wants to control rare earths and their export, it wants to assert a competitive advantage over the United States, by capturing resources, » explains the expert. He also notes Donald Trump’s recent interest in sub-Saharan states, which possess rare earths in their soil, as a way of potentially circumventing Chinese power.

Morocco between the West and China

A loyal ally of the United States, Morocco has nonetheless been concluding economic agreements with China for the past ten years, as illustrated by the gigafactory project. The kingdom is now a bridge between the Western and Chinese economies, and free trade agreements are a win-win situation for both sides.  Abdoun explains that production in Morocco gives Europeans access to resources, while the Chinese gain access to a market. He points out that Morocco is among the countries to have benefited from the smallest increase in tariffs under the Trump administration, with the famous tariffs set at 10%.

Today, the real debate is not about imports, but rather about what happens next in the industrial process. « In a way, China wanted to take over the American extraterritoriality system. In other words, all industries, whether or not they produce in China and use Chinese components, have to seek Chinese approval, » explains Abdoun.

According to him, industry experts approve of Beijing’s message, which seeks to compete with the United States, currently the only country to apply extraterritoriality to components for export. « For the first time, the Chinese suggested that they too could do it. Even if they eventually went back on this decision, it enabled them to make the United States understand that in this war, they had unavoidable trump card, » points out the consultant. He adds that Beijing also wanted to make known its ambition to become a « legal superpower, » a status currently held only by the United States.

Morocco’s rare earths: a vein to be exploited

Following Beijing’s announcements, many countries asked themselves the question: could we exploit and work with our own rare earths? In Morocco, the Office National of Hydrocarbons and Mines (ONHYM) is highlighting the relevance of structuring an integrated rare earths industry.

« These announcements represent an opportunity, because with promising resources and a stable investment framework, Morocco could position itself as a credible partner and complementary supplier on the world market. » But they also represent a challenge « as technical, industrial and environmental capacities will need to be strengthened, in order to meet the growing demands for traceability, sustainability and quality, » an authorized source within ONHYM explains to TelQuel.

Our source goes on to mention the discovery of several prospects, notably at Tamazert in the High Atlas, and in the southern provinces. » The most important are Twihinate, Lamlaga, Lahjeyra, Glibat Lafhouda, Drag Al Farnan, Awark, Aghracha and Targhate… », says ONHYM. The first six deposits mentioned, mainly located south-east of Dakhla, each contain between 50 and 600 megatons (Mt) of rare earths, according to estimates from the same source.

According to ONHYM, Lamlaga has mineral resources estimated at 618 Mt, with rare earth oxide grades estimated at 0.64%, or even 0.95% in some areas. Estimated at around 584.5 Mt, the Awark prospect has an average rare earth content of 0.7%, and includes a zone with a rare earth content of 1.47%.

Although no mining projects have yet been launched, ONHYM hopes to ramp up production over the next decade.  » By 2030, Morocco could occupy a significant position in the rare earths market, subject to the implementation of integrated projects combining exploration, local recovery and industrial development, » says the Office. It adds that, according to estimates, the African continent could account for 10% of the world’s supply of rare earths by 2030, a figure that depends on the realization of current projects and local processing capacities.

Morocco’s rare earths strategy aims to stimulate industrial development by exploiting its mineral resources and strengthening local processing and production capacities. Abdoun points out that a number of competent mining companies are already present in the Kingdom. « First of all, we need to find these resources. After that, it’s a question of need, market and profitability of production, » he concludes.

Written in French by Salomé Krumenacher; edited in English by AngloMedia Group