The African Development Bank (AfDB) has approved a €100 million ($114 million) loan to support the construction of Morocco’s first large-scale electric vehicle (EV) battery manufacturing plant, marking a significant milestone in the country’s ambition to become a regional hub for clean mobility and advanced manufacturing.
The financing will contribute to the development of Africa’s first gigafactory dedicated to producing lithium battery cells, energy storage components and advanced battery technologies.
The project is being led by China’s Gotion High-Tech, a Shenzhen-listed battery manufacturer, with an initial investment estimated at $1.3 billion to establish an integrated facility for producing lithium iron phosphate (LFP) batteries.
The African Development Bank said it also intends to mobilize up to €141 million in additional financing from development partners and financial institutions, acting as the mandated lead arranger for the broader funding package.
Beyond battery cells, the facility will manufacture key battery components, including cathode and anode materials, with the majority of production expected to be exported to European markets.
The investment reinforces Morocco’s growing position as a strategic manufacturing base for electric vehicle batteries, leveraging its proximity to Europe and its well-established automotive industry.
The country has increasingly attracted Chinese battery manufacturers seeking to establish production capacity closer to European automakers amid rising demand for electric vehicles and resilient supply chains.
Morocco’s competitive manufacturing environment, trade agreements and expanding renewable energy capacity have further strengthened its appeal as a destination for EV-related investments.
Morocco signed an investment agreement with Gotion High-Tech in June 2024 to establish the country’s first large-scale EV battery plant.
The initial phase of the project is designed to deliver an annual production capacity of 20 gigawatt-hours (GWh), with long-term plans to expand output to 100 GWh.
If fully implemented, total investment in the project could rise to approximately $6.5 billion, making it one of the largest industrial investments in Morocco’s history.
Over the past two years, Morocco has secured a series of Chinese investments across the electric vehicle battery supply chain.
Several companies have announced projects to manufacture cathode materials, anodes and copper foil used in battery production, creating an increasingly integrated ecosystem for EV manufacturing.
The growing supplier network is expected to enhance Morocco’s competitiveness as global automakers accelerate the transition toward electric mobility.
The automotive sector has become Morocco’s largest industrial export industry, with exports exceeding $14 billion in 2023.
The country hosts major production facilities operated by Renault and Stellantis, with a combined annual manufacturing capacity of around 700,000 vehicles, supported by an extensive network of local suppliers.
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