African Development Bank Approves €100 Million Loan For Africa’s First LFP Battery Gigafactory In Morocco

The African Development Bank Group has approved a €100 million loan to Gotion Power Morocco for the development of Africa’s first lithium iron phosphate (LFP) battery gigafactory. The project represents a major milestone for the continent’s clean energy and electric mobility sectors, as it will be the first integrated battery manufacturing facility in both Africa and the Middle East and North Africa (MENA) region.

The gigafactory will be built in the Rabat-Salé-Kénitra Free Trade Zone and is expected to play a key role in strengthening Morocco’s position as a regional hub for advanced battery manufacturing. In addition to the approved loan, the African Development Bank plans to mobilize up to €141 million from financial partners to further support the project’s development and expansion.

The initiative is being led by Gotion High-Tech Company Limited, one of China’s leading battery manufacturers with a strong global presence in the electric vehicle battery industry. The project reflects the growing interest in expanding battery production outside traditional manufacturing markets to meet rising global demand for clean energy technologies.

During its first phase, the facility will have an annual production capacity of 10 gigawatt-hours (GWh) of battery cells and battery packs designed for electric vehicles. Future expansion plans aim to increase the factory’s total production capacity to 100 GWh, making it one of the largest battery manufacturing facilities in the region. The plant will be powered primarily by renewable energy, supporting the integration of solar and wind energy into electricity grids while also contributing to the growth of sustainable transportation.

The project is expected to generate significant economic and industrial benefits for Morocco. More than 600 direct jobs will be created during the first phase of operations, while the factory is expected to achieve a local industrial integration rate of 70 percent. This will encourage the development of domestic supply chains, strengthen local manufacturing capabilities, and promote the processing of critical minerals required for battery production.

According to the African Development Bank, large-scale battery storage is essential for accelerating Africa’s clean energy transition. By establishing local battery manufacturing capacity, the project will improve the continent’s participation in global electric vehicle and energy storage supply chains. The investment also supports broader goals of industrial development, value addition to natural resources, and the transition toward a lower-carbon economy across Africa.