The African Development Bank Group has approved a €100 million (US$114 million) loan for the development of Africa’s first integrated lithium iron phosphate (LFP) battery gigafactory in Morocco, a strategic investment expected to strengthen industrialisation, support clean energy development and position the continent more competitively in the global electric mobility market.
The project will be developed by Gotion Power Morocco in the Rabat-Salé-Kénitra Free Trade Zone. The Bank also plans to mobilise up to an additional €141 million from financial partners under the New African Financial Architecture for Development (NAFAD), where it will act as Mandated Lead Arranger, to support the implementation of the project.
Led by Gotion High-Tech Co. Ltd., one of the world’s leading battery manufacturers headquartered in Hefei, China, the investment will establish the first integrated battery manufacturing plant in Africa and the Middle East and North Africa (MENA) region. The first phase will produce 10 gigawatt-hours (GWh) of battery cells and battery packs for electric vehicles, with plans to expand production capacity to 100 GWh.
Strengthening Africa’s Clean Energy and Manufacturing Capacity
The gigafactory is expected to play an important role in supporting Africa’s transition to cleaner energy while strengthening the continent’s industrial base. Increased local battery production will support the growing demand for electric vehicles and energy storage systems while helping Africa secure a stronger position in global clean energy value chains.
Kevin Kariuki, the African Development Bank Group’s Vice President for Power, Energy, Climate and Green Growth, said the project addresses one of the continent’s biggest energy challenges. “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.”
He added that the investment goes beyond energy production.
“This is exactly the kind of project that will deliver reliable, low-carbon energy while creating green industrial jobs and building the resilient value chains Africa needs to sustain its energy transition.”
The project also supports the African Development Bank Group’s Four Cardinal Points strategic vision by promoting resilient infrastructure, accelerating industrialisation, adding value to Africa’s natural resources and strengthening regional integration.
Creating Jobs and Building a Local Industrial Ecosystem
Beyond its contribution to clean energy, the project is expected to generate lasting economic benefits for Morocco. During the first phase, more than 600 direct jobs are expected to be created, while the factory aims to achieve a local industrial integration rate of 70%. This is expected to strengthen local supply chains, support skills development and encourage the growth of domestic manufacturing industries.
Achraf Tarsim, the African Development Bank Group’s Country Manager for Morocco, said the investment will strengthen the country’s position as a regional manufacturing centre. “This gigafactory will be a major catalyst for strengthening Morocco’s industrial competitiveness and for accelerating its emergence as Africa’s manufacturing hub for sustainable mobility industries.”
He said the project would also have wider benefits for the continent.
“It will help foster an African industrial ecosystem for batteries and electric vehicles while promoting the local beneficiation of critical minerals essential to the energy transition.”
For Gotion High-Tech, the investment represents another step in expanding its global manufacturing footprint. The company specialises in the research, development, manufacturing and commercialisation of electric vehicle batteries, energy storage systems, battery materials and next-generation battery technologies. With research, manufacturing and business operations across multiple continents, Gotion continues to expand its role in advancing the global energy transition through technological innovation, sustainable manufacturing and strategic international partnerships.
