The African Development Bank Group’s Board of Directors has approved a €100 million loan to Gotion Power Morocco for the development of an integrated lithium iron phosphate (LFP) battery gigafactory in the Rabat-Salé-Kénitra Free Trade Zone. In its role as Mandated Lead Arranger under the New African Financial Architecture for Development, the Bank also plans to mobilize up to an additional €141 million from financial partners to support this strategic initiative.
Scheduled for Phase 1 production of 10 gigawatt-hours (GWh) of battery cells and packs for electric vehicles, the plant represents the first fully integrated cathode-to-cell manufacturing facility in Africa and the broader MENA region. Gotion High-Tech Co. Ltd., a top global battery producer headquartered in Hefei, China, will lead the project, with plans to expand capacity to 100 GWh in subsequent phases.
According to Kevin Kariuki, the Bank’s Vice President for Power, Energy, Climate and Green Growth, battery storage is “the missing link in Africa’s clean energy transition.” He emphasized that a facility of this scale, powered primarily by renewable energy, will strengthen the integration of solar and wind power into regional grids while creating green industrial jobs and resilient value chains.
Achraf Tarsim, the Bank’s Country Manager for Morocco, noted that the gigafactory will serve as “a major catalyst for strengthening Morocco’s industrial competitiveness” and accelerate its emergence as a manufacturing hub for sustainable mobility. The project is designed to foster an African industrial ecosystem for batteries and electric vehicles, promoting local beneficiation of critical minerals essential to the energy transition.
In its first phase, the factory is expected to create more than 600 direct jobs and achieve a 70% local industrial integration rate, supporting skills development and the growth of domestic supply chains. The investment aligns with the African Development Bank Group’s Four Cardinal Points strategic vision by promoting resilient infrastructure, accelerating industrialization, adding value to natural resources, and strengthening regional integration.
By advancing electric mobility and energy storage, the project will contribute to Africa’s shift toward a low-carbon economy and facilitate wider deployment of renewable energy across the continent.
Source: African Development Bank Group
