Morocco wins backing for planned EV battery gigafactory

The African Development Bank approved a €100 million loan on July 24, 2026, to help Gotion Power Morocco develop a planned lithium-iron-phosphate battery plant in Kenitra, Morocco.

The project, led by China’s Gotion High-Tech, would produce battery cells and packs as well as cathode and anode materials. The approval is a major financing step, but the facility is not yet operating and the project still faces construction, funding, workforce and safeguard milestones.

What the bank approved

The planned factory would be built in the Atlantic Free Trade Zone in the Rabat-Salé-Kénitra region. The African Development Bank said it intends to mobilize up to an additional €141 million from financial partners while serving as mandated lead arranger. That amount is planned partner financing, not capital confirmed as disbursed.

The first phase is expected to have annual production capacity of 10 gigawatt-hours of battery cells and packs. Project plans call for a possible expansion to 100 GWh over time. Those figures are targets, not verified production results.

Reuters reported that the initial investment is estimated at about $1.3 billion. The report said the plant is also intended to produce cathodes and anodes, with much of the output aimed at European markets.

Why Morocco is pursuing batteries

Morocco has an established export-oriented automotive industry. The Associated Press reported that more than 250 companies manufacture vehicles or components in the country, including Stellantis and Renault and factories backed by Chinese, Japanese, American and South Korean companies.

Its proximity to Europe and its existing industrial platform have made Morocco attractive to electric-vehicle and battery manufacturers. A cell factory would place the country further up the supply chain, beyond vehicle assembly and component production, and could support battery demand for electric vehicles and energy storage.

The project plans reported by AP call for more than 600 direct jobs and a 70% local industrial-integration rate. Those are expected outcomes, not realized results. Whether they materialize will depend on construction, hiring, supplier development and the ability of Moroccan businesses and workers to meet the plant’s technical requirements.

The questions that remain

The AfDB decision does not establish that construction is complete, that partner financing has closed or that the planned capacity will be reached.

Execution will also determine the project’s public value. Key issues include environmental and social safeguards, water and energy requirements, workforce training, local sourcing and how much of the technology and production chain remains dependent on foreign companies and imported inputs. The AfDB’s project-level environmental and social documentation was dated December 1, 2025, before the loan approval, so it provides background on proposed safeguards and implementation risks rather than evidence of current construction or completed compliance milestones.

For Morocco, the potential benefit is a larger role in electric-mobility and clean-technology supply chains serving Africa and Europe. For businesses and workers, the project could create manufacturing, training and supplier opportunities. The central test will be whether those gains become durable local value rather than mainly the assembly of imported materials.

What happens next

Readers should watch for the closing of additional financing, construction milestones, updated environmental and social compliance information, hiring activity and evidence that local suppliers are participating.

For now, the clearest description is a planned integrated battery gigafactory that has received development-bank backing. The July 24 approval is not the same as a functioning plant, and the project’s longer-term capacity, jobs and export ambitions remain ahead.

Sources

• African Development Bank approval announcement
• Associated Press project report
• Reuters project report