Bank plans additional $162.6M to back Gotion Power Morocco plant
NAIROBI, Kenya — The African Development Bank has approved a $110 million loan to support the construction of a lithium iron phosphate (LFP) battery gigafactory in Morocco, the bank announced Friday, marking what officials describe as the first facility of its kind on the African continent.
The loan to Gotion Power Morocco will finance development of an integrated battery plant in the Rabat-Salé-Kénitra Free Trade Zone, according to the bank. The AfDB said it also plans to serve as mandated lead arranger to mobilize up to $162.6 million in additional financing from development partners, part of a broader effort under the New African Financial Architecture for Development initiative.
Gotion Power Morocco is the Moroccan arm of Chinese battery manufacturer Gotion High-Tech, which MSI previously reported announced plans in June 2024 to invest billions in the Kenitra gigafactory. The factory is expected to begin production in the third quarter of 2026 with an initial capacity of 20 gigawatt hours.
Morocco’s EV sector has expanded rapidly in recent years. The country now hosts more than 250 companies that manufacture cars or their components, including Stellantis, Renault, as well as Chinese, Japanese, American and Korean factories, according to the bank.
The AfDB loan is the latest in a series of development-finance commitments backing African clean-energy and industrial projects. The funding comes as global demand for EV batteries intensifies and as automakers and battery producers seek to diversify supply chains beyond dominant manufacturing hubs in China.
Work on the gigafactory in the Kenitra industrial zone north of the capital Rabat is already underway, with production slated for the third quarter of 2026, according to prior announcements by Gotion. Once operational, the plant will focus on manufacturing LFP batteries, a chemistry that has gained market share in recent years due to lower costs and improved safety compared to nickel-cobalt alternatives.
The AfDB’s Kevin Kariuki, the bank’s vice president for power, energy, climate and green growth, said the project represents a step toward building a domestic battery supply chain on the continent, though the bank did not provide an expected timeline for when the additional financing from partners would be secured.
Morocco’s automotive sector already accounts for a significant share of the country’s exports, and the gigafactory is expected to deepen the integration of local manufacturing into the global EV supply chain.