AfDB Approves €100 Million for Africa's First LFP Battery Gigafactory in Morocco

On July 24, 2026, the African Development Bank (AfDB) approved a €100 million ($114 million) loan to Gotion Power Morocco to build Africa's first integrated lithium iron phosphate (LFP) battery gigafactory in the Rabat-Salé-Kénitra Free Trade Zone near Kenitra, Morocco . This marks a milestone for Africa's entry into advanced battery manufacturing and is designed to connect Chinese battery technology with African industrial development and European EV demand.

Key Project Details

Investment & Financing

The AfDB loan of €100 million (~$114 million) is part of a broader financing structure . The AfDB plans to mobilise up to an additional €141 million from financial partners, acting as Mandated Lead Arranger under the New African Financial Architecture for Development (NAFAD) .

The overall project investment has been reported at multiple scales:

• An initial phase of €1.2 billion (~$1.3 billion)
• A $5.6 billion total commitment cited by Africa.com
• A $6.5 billion full build-out figure cited by several sources

The Moroccan government signed an investment agreement worth 12.8 billion dirhams (~$1.3 billion) for the first phase in June 2024 .

Production Capacity

Phase 1 will produce 10 GWh of LFP battery cells and packs for electric vehicles . The gigafactory has plans to eventually expand capacity to 100 GWh, which would make it one of the largest battery plants in the world . Some sources cite an intermediate target of 20 GWh in the first phase, reflecting variations in reported technical specifications across different announcements .

Timeline

• Gotion High-Tech finalised the investment agreement with Morocco in June 2024
• Construction began in mid-2025
• Production is scheduled to start in the third quarter of 2026

Job Creation

The AfDB states the first phase will create more than 600 direct jobs . Broader Moroccan government estimates cite up to 17,000 direct, indirect, and induced jobs across the full project ecosystem, including 2,300 high-skilled positions . The 17,000-job estimate includes indirect and induced employment across the wider industrial ecosystem, not only direct gigafactory jobs.

Export Targets & Strategic Role

The gigafactory is explicitly positioned as a key overseas capacity base for Gotion High-Tech serving the European EV and energy-storage markets . Morocco's free-trade agreements with the EU and the US, coupled with its proximity to Europe — sea freight from the Strait of Gibraltar to Spain takes about 14 hours — make the Kenitra site a low-tariff export gateway .

Strategic Significance

Bridging Chinese Technology, African Industry, and European Demand

The facility is led by China's Gotion High-Tech, a top-tier global battery manufacturer backed by Volkswagen . It embeds Chinese LFP battery technology directly into Africa's first full-chain battery plant. Morocco already hosts large automotive assembly plants (Renault, Stellantis) and has a growing EV component supply chain. The gigafactory deepens that ecosystem, enabling Morocco to move from assembly to advanced battery cell production .

With production aimed squarely at European EV makers, the plant acts as a nearshoring bridge: Chinese technology and capital, African manufacturing and resources, and Europe's demand for batteries that qualify for local-content incentives .

Energy Transition & Industrialisation

The AfDB's Vice President for Power, Energy, Climate and Green Growth stated that "battery storage is the missing link in Africa's clean energy transition" and that the facility, powered primarily by renewable energy, will strengthen the large-scale integration of solar and wind power . The project aligns with the AfDB's strategic priorities of resilient infrastructure, accelerated industrialisation, value addition to natural resources, and regional integration . A separate $800 million wind power plant with 2,000 MWh of energy storage, developed in partnership with Saudi Arabia's Acwa Power, is being built to supply renewable energy to the gigafactory .

The gigafactory is also expected to achieve a 70% local industrial integration rate, building domestic supplier capacity . Morocco holds the world's largest proven phosphate reserves, a core input for LFP cathode production .

Uncertainties & Caveats

The total investment figure varies across sources ($1.3 billion initial phase vs. $5.6–$6.5 billion total), reflecting phased expansion plans rather than a single committed sum . The 17,000-job estimate includes indirect and induced employment across the wider industrial ecosystem; the AfDB's confirmed direct job figure for Phase 1 is 600 . The 100 GWh expansion target remains a long-term plan and has not been formally committed or financed . The project timeline depends on construction progress; the Q3 2026 start date was set in mid-2024 and may shift .