Casablanca – In a landmark move set to transform Morocco’s role in the global electric vehicle industry, the Moroccan government and the Sino-European group GOTION High-Tech have signed a strategic investment agreement. The agreement, overseen by Prime Minister Aziz Akhannouch and various high-ranking officials, paves the way for the establishment of a colossal GIGAFACTORY in Kenitra, dedicated to the production of electric vehicle batteries. This significant project will involve an investment of approximately $1.32 billion.

According to the official statement from the government, this agreement marks the creation of the first such facility in the Middle East and Africa, bolstering Morocco’s leadership in automotive manufacturing and energy transition. The strategic vision of King Mohammed VI has been instrumental in attracting this pivotal investment, underscoring Morocco’s growing reputation as a prime destination for industrial and technological advancements.

The GIGAFACTORY, to be constructed by GOTION High-Tech—a global leader in electric battery technology with major shareholder Volkswagen Group—will boast an initial production capacity of 20 GWh. This phase of the project will create around 17,000 direct and indirect jobs, including 2,300 highly skilled positions. Over time, the factory’s capacity is expected to expand to 100 GWh, with the total investment reaching $6.7 billion.

During a press roundtable following the signing, Mohcine Jazouli, the Minister Delegate to the Prime Minister in charge of Investment, Convergence, and Evaluation of Public Policies, described this investment as a “game-changer” for Morocco’s aspirations to become a regional hub in electric vehicle manufacturing and sustainable mobility. He emphasized that the project’s construction, set to begin soon, aims for operational readiness by June 2026, establishing a comprehensive industrial ecosystem for electric battery production.

Jazouli highlighted the two-year negotiation process that culminated in the agreement, which was initially outlined during the Gitex Africa exhibition in Marrakech in May 2023. He noted that GOTION High-Tech’s decision to invest in Morocco was influenced by the country’s political stability, dynamic economic growth, a young and skilled workforce, and advanced infrastructure. Additionally, Morocco’s renewable energy initiatives and competitive production costs played a crucial role in attracting this investment.

The new facility will be situated in a newly expanded industrial zone near Kenitra, chosen for its proximity to training centers and specialized universities in the Rabat region. Jazouli stressed that the project has been granted strategic status, benefiting from state support under a special system for strategic investment projects. This comprehensive support framework includes detailed studies of the project’s financial returns and employment impact, ensuring alignment with national development goals.

Ali Seddiki, Director General of the Moroccan Agency for Investment and Export Development (AMDIE), elaborated on the technological sophistication of the project. The factory will utilize advanced high-precision technology and various raw materials, some of which are locally sourced, such as lithium, iron, and phosphate. Seddiki affirmed that Kenitra, with its expertise and established automotive industry, is set to become a leading hub for electric vehicle battery production.

The investment signifies a major economic achievement for Morocco and underscores the country’s strategic importance in the global shift towards clean energy and sustainable transportation. The establishment of the GIGAFACTORY reflects Morocco’s commitment to integrating into international value chains and enhancing its industrial capabilities under the leadership of King Mohammed VI.

This development is part of Morocco’s broader strategy to attract $57 billion in investments and create 500,000 jobs by 2026, aligning with the objectives set out in the new Investment Charter. With a focus on regional equity, the project aims to distribute economic benefits across all regions of the country, fostering inclusive growth and sustainable development.