AfDB approves €100m for Africa’s first EV battery gigafactory in Morocco

The Board of Directors of the African Development Bank Group (AfDB) has approved a €100 million loan to finance a major electric vehicle battery gigafactory in Morocco. This was disclosed in a statement seen by Technext.

The loan was awarded to Gotion Power Morocco for the development of an integrated cathode-to-cell lithium iron phosphate (LFP) battery gigafactory in the Rabat-Salé-Kénitra Free Trade Zone.

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The Bank also plans to mobilise up to an additional €141 million from financial partners to support the implementation of this strategic project, acting as Mandated Lead Arranger under the New African Financial Architecture for Development (NAFAD).

Speaking about the development, the African Development Bank’s Vice President for Power, Energy, Climate and Green Growth, Kevin Kariuki, explained that battery storage is the missing link in Africa’s clean energy transition and the facility is expected to deliver reliable energy.

“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. 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,” he said.

African Development Bank’s loan to power Africa’s energy future

Gotion Morocco is a subsidiary of Gotion High-Tech Co. Ltd., a top-tier global battery manufacturer headquartered in Hefei, China and listed on the Shenzhen Stock Exchange. The project will establish the first integrated battery manufacturing plant in Africa and the Middle East and North Africa (MENA) region, producing 10 gigawatt-hours (GWh) of battery cells and packs for electric vehicles in Phase 1, with plans to expand capacity to 100 GWh. This investment strengthens Morocco’s ambition to become a leading hub for global electric mobility and for green technology value chains.

Beyond its transformative impact on Morocco’s industrial sector, the project is expected to create more than 600 direct jobs in its first phase and achieve a local industrial integration rate of 70%, thereby supporting skills development and the growth of local industrial ecosystems.

The project aligns with 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. It is also expected to strengthen the continent’s position in global clean energy and electric mobility value chains.

By advancing electric mobility and energy storage solutions, the project will help accelerate Africa’s transition to a low-carbon economy and facilitate greater deployment of renewable energy.

The African Development Bank Group’s Country Manager for Morocco, Achraf Tarsim, noted that the new factory will strengthen Morocco’s industrial competitiveness.

“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. 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,” he noted.