Africa’s first EV battery gigafactory wins $114M loan

The African Development Bank approved a €100 million (approximately $114 million) loan to Gotion Power Morocco on Thursday to help develop what will be Africa's first lithium-ion phosphate battery gigafactory, marking a milestone in the continent's push into clean energy manufacturing.afdb+1

A Continental First

The facility, developed by China's Gotion High-Tech, will be located in Morocco's Rabat-Salé-Kénitra region near the industrial city of Kenitra. The project's first phase involves an investment of approximately $1.3 billion, with production scheduled to begin in the third quarter of 2026. The plant will manufacture battery cells and packs as well as cathodes and anodes, creating an integrated battery supply chain primarily targeting European export markets.africa.businessinsider+3

Initial production capacity is set at 20 gigawatt-hours annually, with plans to scale up to 100 GWh across multiple phases at a total projected cost of $6.5 billion. The full buildout is expected to generate thousands of jobs, with the first phase alone projected to create 17,000 direct and indirect positions according to Moroccan government estimates.reuters+2

Strategic Positioning

The AfDB financing adds multilateral backing to a project that positions Morocco as a bridge between Chinese battery technology, African industrial development, and European demand for electric vehicle components. Morocco's proximity to European automakers and its existing automotive manufacturing base — home to plants operated by Renault and Stellantis — made it a natural choice for the facility.weetracker+1

The investment agreement between Gotion High-Tech and the Moroccan government was formalized in June 2024, with Reuters reporting that site preparations were completed by early 2025. The project sits alongside other battery supply chain investments in Morocco from Chinese firms including BTR, CNGR, and Hailiang, collectively turning the country into a North African hub for green technology manufacturing.africa.businessinsider+2

Broader Implications

The gigafactory reflects a wider trend of Chinese battery manufacturers establishing production closer to key export markets, partly in response to shifting trade dynamics between China and Europe. For Africa, the project represents a rare instance of moving beyond raw material extraction toward higher-value manufacturing in the clean energy sector.weetracker