Morocco is set to become home to its first electric vehicle (EV) battery gigafactory, courtesy of Gotion High-tech, a Chinese battery giant backed by Volkswagen. The project, with an estimated total cost of 12.8 billion dirhams ($1.3 billion), marks a significant milestone in Morocco’s bid to enhance its position in the EV market.
According to a Reuters report, the Moroccan government has inked an investment agreement with Gotion for the gigafactory, which will initially boast a battery capacity of 20 GWh. However, plans are in place to ramp up the facility’s capacity to 100 GWh, with a potential total investment reaching $6.5 billion, as outlined by the Moroccan prime minister’s office.
Morocco’s strategic location near Europe, coupled with its free trade agreements with key markets like the European Union and the United States, along with an established automotive sector, renders it an appealing destination for Chinese EV battery manufacturers, as highlighted in the Reuters report.
The country already hosts production plants for major automakers such as Stellantis and Renault, with a combined capacity of 700,000 vehicles annually, in addition to a cluster of local suppliers.
Gotion, a major player in the global battery market, currently holds the ninth position worldwide, commanding a 2.2 percent share of the global installed base of power batteries as of January-April, according to South Korean market researcher SNE Research.
The company’s alliance with Volkswagen, which escalated its stake to 26.47 percent in December 2021, rendering it Gotion’s largest shareholder, underscores its formidable position in the industry.
Gotion’s foray into Morocco follows its successful establishment of a battery production facility in Göttingen, central Germany, marking its inaugural venture in Europe. The facility commenced operations on September 16, 2023, producing its first locally manufactured battery.
Additionally, Gotion’s battery plants in Thailand and the United States both achieved significant milestones, with their first locally produced battery packs rolling off the production line in December last year.
Looking ahead, Gotion aims to bolster its global capacity to 300 GWh by 2025, with 100 GWh earmarked for overseas capacity, as revealed by Gotion’s chairman, Li Zhen, in previous statements.
