Gotion High Tech to build US$1.3B electric battery gigafactory in Morocco

MOROCCO – Chinese-European group Gotion High Tech has signed a deal with the Moroccan government to build a US$1.3 billion gigafactory for manufacturing EV batteries in Kenitra, a city in north-western Morocco.

The announcement was made during a signing ceremony in Rabat, presided over by Prime Minister Aziz Akhannouch.

The strategic investment agreement, endorsed by high-ranking Moroccan officials and Gotion High Tech executives, signifies the beginning of a comprehensive industrial ecosystem for electric battery production in Morocco.

“This project is a monumental step for Morocco, positioning us at the forefront of the electric mobility revolution in the region,” announced Prime Minister Akhannouch.

“It underscores international investors’ confidence in our nation’s potential.”

The Kenitra gigafactory will have an initial production capacity of 20 GWh, with plans to expand to 100 GWh and a total investment of 65 billion dirhams (US$6.8 billion).

This initial phase alone will create 17,000 jobs, including 2,300 highly skilled positions, significantly boosting Morocco’s labor market and technical expertise.

Gotion High Tech’s choice of Morocco underscores the country’s growing appeal as a strategic investment hub, particularly in industries with high value-added potential.

The company, which has already established gigafactories in Europe, the United States, and Asia, is strategically leveraging Morocco’s location and industrial capabilities to tap into the burgeoning electric vehicle market, further solidifying Morocco’s position in the global electric vehicle industry.

Over the past two decades, Morocco has steadily built a reputation as a key player in the automotive and aerospace sectors.

The new gigafactory, a testament to Morocco’s commitment to sustainable industrial development, is expected to further integrate the country into global value chains and bolster its standing as a leader in green technology.

Several other companies have also invested in Morocco’s EV battery sector. In September last year, CNGR Advanced Material, a Chinese battery component manufacturer, announced a partnership with Al Mada, a conglomerate owned by the Moroccan royal family, to invest US$2 billion in a cathode materials plant.

China’s Zhejiang Huayou Cobalt and South Korea’s LG Chem have previously revealed plans to build a lithium refinery and cathode materials plant in Morocco.

In June 2022, Renault announced an agreement with Moroccan mining company Managem to obtain 5,000 tonnes of low-carbon cobalt sulfate annually starting in 2025.

Later that year, Stellantis announced plans to invest more than €300 million (US$324 million) to double production capacity at its Kenitra manufacturing facility.

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