RABAT, July 24 – The African Development Bank (AfDB) has approved a €100 million ($114 million) loan to support the construction of Africa’s first electric vehicle battery gigafactory in Morocco, marking a major milestone in the continent’s efforts to expand its advanced manufacturing and clean energy industries.
The project is being developed by China’s Gotion High-Tech and will require an initial investment of approximately $1.3 billion to establish an integrated lithium iron phosphate (LFP) battery gigafactory, according to the project developers.
Beyond battery cell production, the facility will also manufacture cathode and anode materials, creating a fully integrated battery manufacturing ecosystem designed to supply international markets.
The AfDB said it also plans to mobilise up to an additional €141 million from development finance institutions and other financial partners, acting as the project’s mandated lead arranger.
The majority of the plant’s battery components are expected to be exported to Europe, reinforcing Morocco’s ambition to become a strategic manufacturing hub for the global electric vehicle industry.
Morocco has increasingly attracted investment from Chinese battery manufacturers due to its geographic proximity to European markets, well-established automotive manufacturing base and growing renewable energy capacity, all of which support competitive battery production.
The investment aligns with Morocco’s broader industrialisation strategy and is expected to strengthen regional value chains, create skilled manufacturing jobs and position Africa more prominently within the rapidly expanding global electric vehicle supply chain.
