The African Development Bank (AfDB) has approved a €100 million ($114 million) loan to support the development of Africa’s first electric vehicle battery gigafactory in Morocco, marking a major milestone in the continent’s efforts to build its own clean energy manufacturing industry.
The project is being developed by China’s Gotion High-Tech and will involve an initial investment of about $1.3 billion to build an integrated lithium iron phosphate (LFP) battery plant in Morocco’s Rabat-Salé-Kénitra Free Trade Zone.
Beyond the loan, the AfDB said it plans to mobilise up to an additional €141 million ($161 million) from development finance partners as the mandated lead arranger for the project.
The first phase of the facility will produce 10 gigawatt-hours (GWh) of battery cells and battery packs annually for electric vehicles, with plans to eventually expand capacity to 100 GWh, placing it among the world’s major battery manufacturing sites.
Unlike many battery projects that only assemble battery packs, the Moroccan facility will also manufacture cathodes and anodes, the two key battery components, creating an integrated battery value chain within Africa. Most of the output will be exported to European markets.
