The financing strengthens Morocco’s bid to become Africa’s electric vehicle manufacturing hub. This is while anchoring an integrated lithium iron phosphate battery production facility on the continent. 

Morocco is moving deeper into the global electric vehicle supply chain. The African Development Bank (AfDB) approved a USD 114 million (EUR 100M) loan to Gotion Power Morocco. This aims to build a lithium iron phosphate battery gigafactory.

Why You Should Care

Battery manufacturing has become one of the world’s most strategic industries as demand for electric vehicles and energy storage continues to grow. Morocco has spent years building its automotive ecosystem, attracting international manufacturers and investing in renewable energy. This project moves the country further up the value chain by producing battery cells locally rather than relying solely on vehicle assembly.

For investors and manufacturers across MENA and Africa, the project signals that the region is becoming increasingly competitive in clean technology manufacturing.

The Details

The financing will support an integrated cathode-to-cell lithium iron phosphate battery factory in the Rabat-Salé-Kénitra Free Trade Zone. The African Development Bank also intends to mobilize up to an additional USD 160 million (EUR 141M) from development finance partners.

Developed by China’s Gotion High-Tech, the facility will initially produce 10 gigawatt-hours of battery cells and battery packs annually for electric vehicles. The company ultimately plans to expand production capacity to 100 gigawatt-hours. Thus, it seeks to transform the site into one of the region’s largest battery manufacturing facilities.

According to the African Development Bank, the plant will primarily operate using renewable energy, supporting both industrial development and Africa’s broader energy transition.

“Battery storage is the missing link in Africa’s clean energy transition. A facility of this scale, powered primarily by renewable energy, strengthens the foundations for the large-scale integration of solar and wind power, which our grids increasingly depend on,” said Kevin Kariuki, the Bank Group’s Vice President for Power, Energy, Climate and Green Growth. 

The project is expected to create more than 600 direct jobs during its first phase while achieving a local industrial integration rate of 70%. That level of localization could strengthen Morocco’s domestic supplier network and encourage greater technology transfer across the battery manufacturing ecosystem.

The Ripple

The project extends beyond Morocco’s automotive ambitions.

As countries race to secure battery supply chains, Africa has largely remained a supplier of critical minerals while much of the processing and manufacturing takes place elsewhere. Establishing battery production capacity within the continent could help capture more economic value locally while supporting the development of electric vehicle manufacturing across Africa.

The investment also reinforces Morocco’s growing position as a manufacturing gateway connecting Europe, Africa, and the Middle East. Combined with its expanding renewable energy capacity and established automotive industry, the country is increasingly positioning itself as a destination for clean technology investment.

What to Watch

The immediate milestone will be the construction of the first 10 GWh production phase. Longer term, investors will watch whether Gotion proceeds with its planned expansion to 100 GWh and whether additional battery material suppliers, component manufacturers, and electric vehicle companies establish operations around the facility.

If those investments materialize, Morocco could emerge as one of the continent’s most important hubs for battery production and electric mobility. Thus, accelerating Africa’s participation in the global clean energy value chain.