Chinese battery giant wins AfDB backing for Africa’s first gigafactory in Morocco
The project is being developed by China’s Gotion High-Tech and will involve an initial investment of about $1.3 billion to build an integrated lithium iron phosphate (LFP) battery plant in Morocco’s Rabat-Salé-Kénitra Free Trade Zone.
Beyond the loan, the AfDB said it plans to mobilise up to an additional €141 million ($161 million) from development finance partners as the mandated lead arranger for the project.
The first phase of the facility will produce 10 gigawatt-hours (GWh) of battery cells and battery packs annually for electric vehicles, with plans to eventually expand capacity to 100 GWh, placing it among the world’s major battery manufacturing sites.
Unlike many battery projects that only assemble battery packs, the Moroccan facility will also manufacture cathodes and anodes, the two key battery components, creating an integrated battery value chain within Africa. Most of the output will be exported to European markets.
Morocco’s EV ambitions
The investment further strengthens Morocco’s position as Africa’s fastest-growing electric.
The country already hosts vehicle production facilities for Renault and Stellantis and has attracted a wave of Chinese investment in battery materials, including projects by BTR New Material Group, CNGR Advanced Material, Hailiang and Shinzoom.
Morocco’s proximity to Europe, free trade agreements and established automotive industry have made it an attractive destination for companies seeking to serve the European EV market while diversifying manufacturing away from Asia.
Industrialisation over raw minerals
The project also reflects Africa’s growing push to move beyond exporting raw critical minerals and instead capture more value through local processing and manufacturing.
According to the AfDB, the gigafactory is expected to create more than 600 direct jobs during its first phase while achieving a 70% local industrial integration rate, helping develop domestic suppliers and technical skills.
Source: Africabusinessinsider
