Casablanca – Morocco is preparing to host Africa’s first fully integrated electric vehicle battery plant after the African Development Bank approved a loan of $114 million to support the project. The facility, to be built in the Atlantic Free Zone in Kenitra, will specialize in lithium iron phosphate (LFP) batteries and is expected to reshape the country’s industrial base while reinforcing its role in the global clean energy transition.

The project is led by Gotion High-Tech, a Chinese battery manufacturer listed on the Shenzhen Stock Exchange, through its Moroccan subsidiary Gotion Power Morocco. With an initial investment of about $1.3 billion, the factory will produce LFP batteries, cathode and anode materials, and complete battery packs for electric vehicles. The African Development Bank, acting as the lead arranger, has also committed to mobilizing an additional $160 million from financial partners to strengthen the financing structure.

In its first phase, the plant will have a production capacity of 10 gigawatt-hours (GWh), with plans to gradually expand to 100 GWh. Most of the output will be exported to European markets, where demand for EV batteries is rising sharply due to stricter emissions regulations and the rapid adoption of electric mobility.

The project is expected to create more than 600 direct jobs in its initial stage, while achieving a local industrial integration rate of around 70 percent. This will boost Morocco’s industrial ecosystem, encourage technology transfer, and enhance the value of strategic minerals essential for battery production.

Morocco already has a strong automotive industry, with exports exceeding $14 billion in 2023. The country hosts major factories for Renault and Stellantis, with a combined annual production capacity of about 700,000 vehicles. The addition of a large-scale EV battery plant complements this infrastructure and supports Morocco’s ambition to become a regional hub for electric vehicle production and exports.

The Moroccan government signed an investment agreement with Gotion High-Tech in June 2024, laying the groundwork for the project. While the initial investment is valued at $1.3 billion, later phases could raise the total to $6.5 billion, reflecting the scale of Morocco’s commitment to clean energy industries. Over the past two years, Morocco has also attracted additional Chinese investments in the EV battery supply chain, including factories for cathode and anode materials and copper foil used in batteries.

The African Development Bank has emphasized that the project aligns with its strategy to accelerate industrialization, support renewable energy adoption, and advance Africa’s energy transition. By investing in EV battery production, the Bank aims to strengthen the continent’s position in clean energy technologies and sustainable mobility solutions.

This initiative also reflects Morocco’s national strategy to leverage its industrial base and mineral resources to secure a place in global value chains for green technologies. By combining industrial capacity, geographic advantages, and a commitment to renewable energy, Morocco is positioning itself at the forefront of the global shift toward sustainable transportation and clean energy solutions.

The establishment of Morocco’s first integrated EV battery factory marks a significant milestone for both the country and the African continent. With strong financial backing, strategic partnerships, and a clear roadmap for expansion, the project is poised to transform Morocco into a leading hub for electric mobility and clean energy industries.