RABAT
Morocco secured a €100 million ($116 million) loan from the African Development Bank Group to help finance Africa’s first integrated lithium iron phosphate battery plant, strengthening the North African country’s push to become a hub for electric vehicle manufacturing.
The funding, approved for Gotion Power Morocco, will support the construction of a cathode-to-cell battery gigafactory in the Rabat-Salé-Kénitra Free Trade Zone, according to the lender. The bank also plans to mobilize as much as €141 million from other financial institutions for the project.
The African Development Bank (AfDB) announced the financing on July 24, saying the facility will be the first integrated battery manufacturing plant in Africa and the Middle East and North Africa region.
The project’s initial phase is expected to produce 10 gigawatt-hours of battery cells and packs annually, with plans to expand capacity to 100 gigawatt-hours.
The factory is being developed by Gotion High-Tech Co., a Chinese battery maker listed on the Shenzhen Stock Exchange. The company is seeking to capitalize on growing demand for electric vehicles and energy storage technologies as governments accelerate the shift away from fossil fuels.
Kevin Kariuki, the bank’s vice president for power, energy, climate and green growth, said battery storage remains the “missing link” in Africa’s clean-energy transition.
He said a facility powered largely by renewable energy would help integrate more solar and wind power into electricity grids while creating jobs and strengthening industrial supply chains.
Morocco has emerged as one of Africa’s leading automotive manufacturing centers, attracting investment from global carmakers and suppliers.
The government is betting that battery production will deepen the country’s role in electric mobility and green technology value chains.
Achraf Tarsim, the bank’s country manager for Morocco, called the project a “major catalyst” for the country’s industrial competitiveness and said it would accelerate Morocco’s rise as a manufacturing base for sustainable mobility industries.
The project is expected to create more than 600 direct jobs in its first phase and achieve a local integration rate of 70%, according to the bank.
According to the AfDB, the project is expected to support regional battery and electric-vehicle supply chains while promoting the local processing of minerals needed for the energy transition.
Gotion High-Tech, based in Hefei, China, develops lithium-ion batteries, energy storage systems and battery materials and operates research and manufacturing facilities across multiple continents.
