The African Development Bank has approved a €100 million loan for Gotion Power Morocco to develop an integrated lithium iron phosphate battery manufacturing plant in Morocco’s Rabat-Salé-Kénitra Free Trade Zone.
The bank also plans to mobilise up to €141 million from other financiers as mandated lead arranger. According to the AfDB, the project will be Africa and the Middle East and North Africa region’s first integrated battery plant covering production from cathode materials to cells and battery packs.
A 10-gigawatt-hour first phase
The first phase is designed to produce battery cells and packs with annual capacity of 10 gigawatt-hours. The project has the potential to expand to 100 gigawatt-hours in later phases, although that expansion will depend on investment decisions, market demand and project execution.
Lithium iron phosphate batteries are widely used in electric mobility and stationary energy-storage systems. Developing local manufacturing capacity could allow Morocco to capture more value from the transition to electric vehicles and renewable-energy storage rather than relying only on imported battery systems or lower-value segments of the supply chain.
Industrial ambition meets execution risk
The project fits Morocco’s wider strategy of building manufacturing capacity around the automotive and clean-energy sectors. Its long-term industrial impact will depend on local supplier participation, skills development, access to inputs, reliable energy and the ability to compete in rapidly changing global battery markets.
The financing approval marks a significant step, but it does not mean the full 100-gigawatt-hour expansion has been completed or financed. The immediate commitment supports the planned first phase of the integrated facility.
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