The African Development Bank (AfDB) has approved a $110 million loan to finance the construction of Africa’s first electric vehicle (EV) battery gigafactory in Morocco, marking a significant step in the continent’s efforts to develop a domestic EV battery industry. The funding will support Gotion Power Morocco in building an integrated lithium iron phosphate (LFP) battery plant located within the Rabat-Salé-Kénitra Free Trade Zone.
In addition to the loan, the AfDB plans to secure up to $162.6 million in further financing from development partners through its New African Financial Architecture for Development initiative, under which it serves as the mandated lead arranger for the project. The new factory, led by China’s Gotion High-Tech Co. Ltd., will be Africa’s first fully integrated EV battery manufacturing facility and the first of its kind in the Middle East and North Africa region.
The plant’s initial phase aims to produce 10 gigawatt-hours (GWh) of battery cells and packs annually, with ambitions to expand capacity to 100 GWh in the future. This development coincides with Morocco’s growing EV sector, which currently includes over 250 automotive manufacturers and component suppliers such as Stellantis and Renault, as well as factories operated by Chinese, Japanese, American, and South Korean companies.
Battery storage technology plays a crucial role in Africa’s transition to clean energy, addressing challenges related to power grid stability as reliance on solar and wind energy increases. Kevin Kariuki, AfDB’s vice president for Power, Energy, Climate and Green Growth, highlighted that the facility’s focus on renewable energy would strengthen Africa’s capacity to integrate large-scale solar and wind power effectively.
Besides bolstering the continent’s clean energy infrastructure, the project is expected to create green jobs, enhance supply chains necessary for Africa’s energy transition, and support economic development by increasing Morocco’s industrial competitiveness. Achraf Tarsim, the AfDB’s country manager for Morocco, noted the potential positive impact of the gigafactory on the nation’s manufacturing sector.
The initiative reflects broader trends across Africa, where rising fuel costs and frequent shortages are accelerating the adoption of electric vehicles as a cleaner and more affordable transportation option. This factory symbolizes a significant milestone toward establishing a sustainable EV ecosystem within the region.