Editor’s note: African-Startups is a sister publication of EU-Startups, bringing trusted coverage of startups, venture capital, and innovation across Africa.
The African Development Bank (AfDB) has approved a $113.7 million (€100 million) loan to Gotion Power Morocco to finance the development of an integrated lithium iron phosphate battery gigafactory in the Rabat-Salé-Kénitra Free Trade Zone.
The bank also plans to mobilise up to an additional $160.4 million (€141 million) from financial partners, acting as mandated lead arranger under the New African Financial Architecture for Development.
The project will establish the first integrated battery manufacturing plant in Africa and the Middle East and North Africa region.
Led by Gotion High-Tech, the gigafactory will produce 10 gigawatt-hours of battery cells and packs for electric vehicles in its first phase, with plans to expand capacity to 100 GWh.
The project is expected to create more than 600 direct jobs in phase one and achieve a local industrial integration rate of 70%.
“Battery storage is the missing link in Africa’s clean energy transition. 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. This is exactly the kind of project that will deliver reliable, low-carbon energy while creating green industrial jobs and building the resilient value chains Africa needs to sustain its energy transition,” said Kevin Kariuki, the AfDB’s vice president for power, energy, climate and green growth.
The announcement comes a day after the African Development Bank Group and the Fonds d’équipement communal (FEC) signed a second agreement for a €150 million loan on 22 July in Rabat, to support investment momentum among Morocco’s municipalities.
The investment helps Morocco aim to be a key centre for electric mobility and green technology. Additionally, the project promotes the local processing of important minerals needed for the energy transition.
“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. It will help foster an African industrial ecosystem for batteries and electric vehicles while promoting the local beneficiation of critical minerals essential to the energy transition,” said Achraf Tarsim, the AfDB’s country manager for Morocco.
The project aligns with the African Development Bank’s Four Cardinal Points strategic vision by promoting resilient infrastructure, accelerating industrialisation, adding value to Africa’s natural resources, and strengthening regional integration.
