RABAT, Morocco (XOL Africa) — The African Development Bank has approved a €100 million loan to Gotion Power Morocco to develop Africa’s first integrated lithium iron phosphate (LFP) battery gigafactory, marking a major step toward establishing the continent as a global hub for electric mobility and clean energy technology.
The project, led by Chinese battery manufacturer Gotion High-Tech Co. Ltd., will be built in Morocco’s Rabat-Salé-Kénitra Free Trade Zone. The first phase will produce 10 gigawatt-hours of battery cells and packs for electric vehicles, with plans to eventually increase production capacity to 100 gigawatt-hours.
The African Development Bank also plans to mobilize up to an additional €141 million from financial partners to support the project, acting as mandated lead arranger under the New African Financial Architecture for Development.
“Battery storage is the missing link in Africa’s clean energy transition,” said Kevin Kariuki, the bank’s vice president for power, energy, climate and green growth.
“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,” Kariuki said.
The first-of-its-kind gigafactory in Africa and the Middle East and North Africa region is expected to create more than 600 direct jobs during its first phase and achieve a local industrial integration rate of 70%, according to the bank.
“This gigafactory will be a major catalyst for strengthening Morocco’s industrial competitiveness and for accelerating its emergence as Africa’s manufacturing hub for sustainable mobility industries,” said Achraf Tarsim, the African Development Bank Group’s country manager for Morocco.
The project is expected to help establish an African industrial ecosystem for batteries and electric vehicles while promoting local beneficiation of critical minerals essential to the global energy transition.
The African Development Bank said the investment will also support Africa’s shift toward a low-carbon economy by advancing electric mobility, expanding energy storage and facilitating greater deployment of renewable energy.
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