Morocco secures $114 million in funding for Africa’s first EV battery factory

NAIROBI, Kenya (AP) — The African Development Bank (AfDB) has approved a $110 million loan to support the construction of Africa’s first gigafactory in Morocco, backing the continent’s push to build a domestic electric vehicle battery industry.

The loan to Gotion Power Morocco will finance the development of an integrated lithium iron phosphate (LFP) battery plant in the Rabat-Salé-Kénitra Free Trade Zone, the bank said Friday.

The bank said it also plans to mobilize up to $162.6 million in additional financing from development partners for the project under the New African Financial Architecture for Development initiative, where it is serving as mandated lead arranger.

Morocco’s EV sector is booming. The country hosts more than 250 companies that manufacture cars or their components, including Stellantis and Renault, as well as Chinese, Japanese, American and Korean factories.

Across Africa, the use of electric vehicles is surging as soaring prices and fuel shortages compel countries to opt for cleaner and cheaper transport.

Led by China’s Gotion High-Tech Co. Ltd., the Moroccan project will establish the first integrated battery manufacturing plant in Africa, the Middle East and North Africa region. The factory is expected to produce 10 gigawatt-hours of battery cells and packs annually for electric vehicles during its first phase, with plans to expand capacity to 100 GWh.

“ Battery storage is the missing link in Africa’s clean energy transition,” Kevin Kariuki, the bank’s vice president for Power, Energy, Climate and Green Growth, said in a statement.

“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,” he said.

Kariuki said the project would help deliver reliable, low-carbon electricity while creating green jobs and strengthening supply chains needed to support Africa’s energy transition.

The project is also expected to boost Morocco’s industrial competitiveness, according to Achraf Tarsim, the African Development Bank’s country manager for Morocco.

“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,” Tarsim said.

The first phase of the project is expected to create more than 600 direct jobs and achieve a local industrial integration rate of 70%, supporting skills development and the growth of domestic manufacturing supply chains.

The investment is expected to strengthen Morocco’s ambitions to become a regional hub for electric mobility and green technology manufacturing.

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