AfDB backs Morocco’s first battery gigafactory with €100m loan

Africa’s critical minerals value chain is taking another step forward after the African Development Bank (AfDB) approved a €100 million loan for the development of Morocco’s first integrated lithium iron phosphate (LFP) battery gigafactory.

The funding will support Gotion Power Morocco’s project in the Rabat-Salé-Kénitra Free Trade Zone, where the company plans to establish Africa’s first integrated cathode-to-cell battery manufacturing facility. The project is expected to strengthen Morocco’s position as an emerging hub for electric mobility and clean technology manufacturing while adding value to minerals produced on the continent.

Beyond the loan, the AfDB plans to mobilise up to €141 million from financial partners through the New African Financial Architecture for Development (NAFAD), where it will serve as Mandated Lead Arranger.

The project is being led by China’s Gotion High-Tech Co. Ltd., a global battery manufacturer headquartered in Hefei and listed on the Shenzhen Stock Exchange. During its first phase, the plant will have the capacity to produce 10 gigawatt-hours (GWh) of battery cells and packs for electric vehicles annually, with plans to expand production to 100 GWh in the future.

For Africa’s mining sector, the investment represents more than just another manufacturing project. It signals growing momentum towards local beneficiation of critical minerals, allowing more value to be retained on the continent instead of exporting raw materials for processing elsewhere.

Kevin Kariuki, the African Development Bank Group’s Vice President for Power, Energy, Climate and Green Growth, said battery storage remains a critical component of Africa’s clean energy transition.

“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 said.

Kariuki added that projects of this nature would help deliver reliable, low-carbon energy while creating green industrial jobs and strengthening the value chains needed to support Africa’s energy transition.

African Development Bank Group Country Manager for Morocco, Achraf Tarsim, said the gigafactory would enhance Morocco’s industrial competitiveness while accelerating its emergence as a manufacturing hub for sustainable mobility.

“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 said.

The project is expected to create more than 600 direct jobs during its first phase while achieving a local industrial integration rate of approximately 70%. It is also expected to contribute to skills development and support the growth of local suppliers and industrial ecosystems.

The investment aligns with the African Development Bank Group’s strategy to promote industrialisation, develop resilient infrastructure, add value to Africa’s natural resources and strengthen regional integration. As demand for battery minerals continues to grow worldwide, projects such as Morocco’s gigafactory are expected to play an increasingly important role in positioning Africa higher up the global clean energy and electric vehicle value chain.