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FinanceAfDB approves $114m loan for Morocco battery plant
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The African Development Bank (AfDB) has approved a €100 million ($114 million) loan to Gotion Power Morocco, a subsidiary of Chinese battery manufacturer Gotion High-Tech, to build an integrated lithium iron phosphate (LFP) battery giga-factory in the Rabat-Salé-Kénitra Free Trade Zone in Morocco. The AfDB also plans to mobilize an additional €141 million from other partners. The first phase of the project will produce 10 GWh of battery cells and packs for electric vehicles, with a long-term goal of reaching 100 GWh total capacity. The project aims to strengthen Morocco's role as an electric mobility hub and integrate it into global green technology supply chains. It is expected to create over 600 direct jobs in the initial phase and achieve a 70% local industrial integration rate. The AfDB stated the project aligns with its Four Cardinal Points vision, focusing on resilient infrastructure, value addition, industrialization, and regional integration.
Source report
The African Development Bank (AfDB) Group has approved a €100 million ($114 million) loan to Gotion Power Morocco for the development of an integrated lithium iron phosphate (LFP) battery giga-factory in the Rabat-Salé-Kénitra Free Trade Zone.
As part of its role as Mandated Lead Arranger under the New African Financial Architecture for Development, the AfDB also intends to mobilise up to an additional €141 million from other partners.
Project Overview
Led by Chinese battery manufacturer Gotion High-Tech Co, which is listed on the Shenzhen Stock Exchange, the project aims to establish an integrated cathode-to-cell manufacturing line.
- First phase: Production capacity of 10 GWh of battery cells and packs for electric vehicles (EVs)
- Long-term target: Expansion to a total capacity of 100 GWh
Strategic Objectives
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 the initiative aligns with its Four Cardinal Points vision, which includes:
- Promoting resilient infrastructure
- Expanding value addition to natural resources
- Accelerating industrialisation
- Enhancing regional integration
Job Creation and Local Impact
- More than 600 direct roles projected in the initial phase
- Anticipated local industrial integration rate of 70%
- Expected to support skills development and growth of local supply ecosystems
Official Statement
"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."
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— Kevin Kariuki, Vice President, AfDB Group Power, Energy, Climate and Green Growth
Related Development
In June 2025, the AfDB approved a €19.6 million financing package to support the second phase of the Cabeólica expansion project in Cabo Verde.
This article was originally created and published by Power Technology, a GlobalData owned brand.
Source
Yahoo FinanceWestern
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AfDB approves $114m loan for Morocco battery plant