First American firm to assemble electric trucks in Africa

From the newsletter 

Cenntro Inc is set to become the first American company to assemble fully electric commercial vehicles in Africa. The company has signed a partnership with Moroccan EV distributor Electricove Maroc, which will assemble Cenntro's EVs locally and distribute them in Morocco and North Africa. Cenntro will supply assembly kits for models such as the Teemak and LS450. 

• Demand for EVs in Africa is attracting global companies. Cenntro has a broad strategy to strengthen its presence in Europe, Middle East and Africa. 

• Morocco is becoming a hub for EV manufacturing. Stellantis makes the Citroën Ami, Opel Rocks-e and Fiat Topolino electric microcars there, as well as the Fiat Tris, a three-wheeled EV. Renault also produces the Mobilize DUO in Morocco.  

More details

• As part of the deal, Cenntro will supply assembly kits for models such as the Teemak and LS450. The company will also provide technical documents, engineering support, and training to help establish local assembly operations.

• The Cenntro LS450 is an all-electric commercial vehicle, designed for urban delivery and utility services. It boasts a 128 kWh battery pack and is available in various configurations, including a delivery van, cargo truck, shuttle bus, and refrigerated truck. The Cenntro TeeMak is an electric, off-road UTV with a focus on commercial, ranch, and recreational use. The TeeMak is powered by a LiFePO4 battery with a 75 km range. 

• Electricove has reportedly secured strong backing for the initiative from Moroccan government agencies and business groups. Cenntro's CEO Peter Wang noted that the collaboration marks a significant advancement in expanding EV adoption in the region and reinforces the company's ongoing relationship with Electricove by offering technical assistance as they scale operations.

• Morocco is becoming a magnet for EV manufacturers seeking to enter the nearby European market. The North African country is a global leader in low-cost vehicle manufacturing, with labor costs estimated at just $106 per vehicle. This significantly undercuts other major automotive manufacturing countries, including Germany, where it costs $3,307 per vehicle, and even China, where it costs $597 per vehicle. 

• Morocco is building a vertically integrated motor vehicle manufacturing industry to reduce its reliance on imported components. The country is building major EV battery and battery component plants, mainly with the help of Chinese companies. Last month for instance, Sino-Moroccan company COBCO began production at a $2 billion plant for lithium-ion battery components in Jorf Lasfar. 

• The African EV market, including commercial vehicles, is projected to reach U$209.9 million by the end of 2025, with a further increase to $314.1 million by 2029. Cenntro will lean on the growing demand for electric commercial vehicles like pick-ups, minivans, vans, light trucks and heavy trucks on the continent as companies search for more cost-effective logistics solutions.  

Our take

• Cenntro’s Morocco partnership may spark a wave of similar deals, with other American and Asian EV makers forming joint ventures to assemble EVs regionally using CKD kits, leveraging Morocco’s low costs and proximity to Europe and West Africa. 

• With rising fuel costs and urban emission rules, logistics and delivery companies in Africa are likely to begin piloting or scaling up electric fleets, especially light trucks, vans, and shuttle buses like Cenntro’s LS450, as fleet electrification becomes a cost-saving move. 

• The entry of an increasing number of EV companies like Cenntro will spur Morocco to ramp up its battery and components manufacturing, attracting more suppliers and deepening vertical integration, creating a regional EV manufacturing hub for both Africa and southern Europe.