The African Development Bank (AfDB) has approved a €100 million loan to support Chinese battery manufacturer Gotion High-Tech’s planned battery production facility in Morocco, marking a significant step toward establishing Africa’s first integrated battery manufacturing plant.
The financing will help develop the factory in the Rabat-Salé-Kénitra Free Trade Zone, where Gotion intends to manufacture lithium iron phosphate (LFP) battery cells and battery packs for electric vehicles.
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Initial Production Capacity Set at 10GWh
The project will be led by Gotion Power Morocco, a wholly owned subsidiary of Gotion High-Tech. According to the African Development Bank, the facility’s first development phase will provide annual production capacity of 10 gigawatt-hours (GWh), with long-term plans to expand output to 100GWh.
The battery maker signed an investment agreement with the Moroccan government in 2024 to establish the manufacturing site. At the time, the project was expected to begin with 20GWh of annual production capacity. The bank’s latest announcement revises the initial target to 10GWh while maintaining the longer-term expansion goal.
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No construction or commissioning timeline has been disclosed.
Additional Financing Planned
Beyond the approved €100 million loan, the African Development Bank said it intends to mobilize additional financing from development finance institutions and other financial partners to support the project.
The bank said total funding from participating financial institutions could reach as much as €141 million.
“The African Development Bank plans to mobilise further funds from financial partners to support the implementation of this strategic project.”
The investment is expected to strengthen Morocco’s position as an emerging electric vehicle manufacturing hub while supporting the development of a regional battery supply chain.
The project could also reinforce electric vehicle production in neighboring Europe, particularly in Spain, where automotive manufacturers are expanding battery and EV manufacturing capacity. Its location in Morocco is expected to enhance supply chain links between North Africa and southern Europe as demand for electric vehicle batteries continues to grow.
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