The African Development Bank (AfDB) Group has approved a €100m ($114m) loan to Gotion Power Morocco to develop an integrated lithium iron phosphate (LFP) battery giga-factory in the Rabat-Salé-Kénitra Free Trade Zone.
The financial institution also intends to mobilise up to an additional €141m from other partners as part of its role as Mandated Lead Arranger under the New African Financial Architecture for Development.
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Led by Chinese battery manufacturer Gotion High-Tech Co, and listed on the Shenzhen Stock Exchange, the project aims to establish an integrated cathode-to-cell manufacturing line.
The first phase is set to produce 10GW-hours (GWh) of battery cells and packs for electric vehicles (EVs), with a view to expanding to a total capacity of 100GWh.
The project is intended to strengthen Morocco’s potential as a hub for electric mobility and its position within global green technology supply chains.
The AfDB stated that it aligns with its Four Cardinal Points vision, which includes promoting resilient infrastructure, expanding value addition to natural resources, accelerating industrialisation and enhancing regional integration.
Job creation is among the aims outlined, with projections for more than 600 direct roles in the initial phase.
The project anticipates a local industrial integration rate of 70%, which is expected to support skills development and the growth of local supply ecosystems.
AfDB Group Power, Energy, Climate and Green Growth vice-president Kevin Kariuki said: “Battery storage is the missing link in Africa’s clean energy transition. 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.
“This is exactly the kind of project that will deliver reliable, low-carbon energy while creating green industrial jobs and building the resilient value chains Africa needs to sustain its energy transition.”
In June 2025, the AfDB approved a €19.6m financing package to support the second phase of the Cabeólica expansion project in Cabo Verde.
