The African Development Bank (AfDB) has approved a €100 million loan to Gotion Power Morocco to finance the development of a large-scale integrated lithium iron phosphate (LFP) battery manufacturing plant, marking a major step in Morocco's ambition to become a global hub for electric vehicle (EV) manufacturing and green technology supply chains.
In a statement, the AfDB said the project will be located in the Rabat-Salé-Kénitra Atlantic Free Zone and will cover the entire battery value chain, from cathode materials to battery cell production.
The bank also plans to mobilize an additional €141 million from financial partners to support the strategic investment as the mandated lead arranger under the New Africa Financial Alliance for Development (NAFAD).
The project is being led by Gotion High-Tech Co. Ltd., one of China's leading battery manufacturers listed on the Shenzhen Stock Exchange. Once completed, the facility will become the first fully integrated EV battery manufacturing plant in Africa and the Middle East and North Africa (MENA) region.
The first phase of the project will have an annual production capacity of 10 gigawatt-hours (GWh) of battery cells and battery packs for electric vehicles, with plans to gradually expand capacity to 100 GWh. The investment is expected to reinforce Morocco's strategy of positioning itself as a global center for electric mobility and green industrial value chains.
Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth, said battery energy storage is a critical component of Africa's clean energy transition.
"Battery energy storage is the missing link in Africa's transition to clean energy. A facility of this scale, powered largely by renewable energy, will strengthen the foundations needed for the large-scale integration of solar and wind power into our electricity systems," Kariuki said in the bank's statement.
He added that the project represents a model for industrial investments capable of delivering reliable, low-carbon energy while creating green manufacturing jobs and strengthening resilient supply chains needed for Africa's energy transition.
Ashraf Tarsim, the African Development Bank's Country Manager for Morocco, described the gigafactory as a major catalyst for the Kingdom's industrial competitiveness.
According to Tarsim, the project will accelerate Morocco's emergence as an African industrial platform for sustainable mobility while supporting the development of a regional battery and electric vehicle ecosystem. It will also promote local value addition of critical minerals essential to the global energy transition.
Beyond its strategic industrial significance, the project is expected to create more than 600 direct jobs during its initial phase and increase local industrial integration to 70%, contributing to skills development and strengthening domestic industrial ecosystems.
The investment aligns with the African Development Bank's strategic priorities of promoting resilient infrastructure, accelerating industrialization, adding value to Africa's natural resources and fostering regional integration.
By supporting battery manufacturing and energy storage technologies, the project is also expected to accelerate Africa's transition toward a low-carbon economy while enabling broader deployment of renewable energy across the continent.
