The African Development Bank has approved a €100 million ($114 million) loan to help finance Morocco’s first electric vehicle battery gigafactory, a project that is expected to strengthen the country’s role in the global EV supply chain while expanding advanced manufacturing in Africa.

The funding marks another step in Morocco’s effort to attract investment into clean energy industries as demand for electric vehicles continues to grow across Europe.

The country has steadily built a reputation as one of Africa’s leading automotive manufacturing hubs, drawing global automakers and battery producers with its strategic location and export links.

For the African Development Bank, the project aligns with its broader goal of supporting industrial development and value-added manufacturing across the continent.

It also comes as governments and companies race to secure reliable supplies of EV batteries and battery materials.

The factory will be developed by China’s Gotion High-Tech and is expected to produce lithium iron phosphate (LFP) battery cells alongside key battery components for export, with Europe expected to be its main market.

Morocco strengthens EV manufacturing

The battery plant will require an initial investment of about $1.3 billion, according to the project’s developers.

It is designed as an integrated cathode-to-cell lithium iron phosphate battery facility, allowing production of battery cells as well as cathodes and anodes at a single site.

Morocco’s proximity to Europe, established automotive industry and growing manufacturing base have made it an attractive destination for Chinese battery makers looking to expand production closer to European customers.

AfDB seeks additional financing

Beyond the $114 million loan, the African Development Bank said it plans to mobilize up to an additional $160.36 million from financial partners while serving as the project’s mandated lead arranger.

The additional financing is expected to support construction and help bring the project to commercial operation.

Most of the batteries and battery materials produced at the facility are expected to be exported to Europe, where demand continues to rise as automakers expand their electric vehicle offerings.

Gotion expands African footprint

Gotion High-Tech, which is listed on the Shenzhen Stock Exchange, is one of China’s leading battery manufacturers, producing lithium-ion batteries and energy storage systems for electric vehicles and renewable energy projects.

The company has expanded its manufacturing footprint in several international markets as demand for battery production capacity grows.

The AfDB said the project is expected to support skilled employment, strengthen local manufacturing and deepen Africa’s participation in the global electric vehicle supply chain, reinforcing Morocco’s position as a key production base for the next generation of automotive technologies.