Morocco to host Africa’s first gigafactory in $6.5bl deal with China’s Gotion

Chinese battery giant Gotion High Tech is set to break ground in the coming days on a $6.5 billion electric vehicle battery gigafactory in Morocco, marking a major step in the country’s growing role in the global green energy supply chain.

The project, led by the company’s Moroccan subsidiary Gotion Power Morocco, will be located near Kenitra, and is expected to be Africa’s first battery gigafactory, according to company executive Khalid Qalam, who spoke at an industry event Wednesday in Rabat.

The announcement follows an investment deal signed last June with the Moroccan government. Once completed, the plant is expected to reach a production capacity of up to 100 gigawatt-hours (GWh) per year, with Volkswagen—Gotion’s reference shareholder—backing the initiative.

In its initial phase, the factory will have a capacity of 20 GWh at a cost of $1.3 billion, Qalam said. A second phase aims to double capacity to 40 GWh, though no timeline has been provided.

Production is scheduled to begin by the third quarter of 2026. In addition to EV batteries, the plant will produce cathodes and anodes for export to Europe, with Qalam confirming the company has already secured orders from multiple European car manufacturers.

Strategic Choice

Morocco was chosen for the gigafactory due to its strategic location, mature automotive industry, and access to critical raw materials such as cobalt and phosphorus, analysts say.

Rachid Sari, head of the African Center for Strategic Studies and Digitalization, told Hespress AR that China is diversifying its global supply chains in response to lessons learned from the COVID-19 pandemic. Morocco and Egypt have emerged as top destinations.

“Morocco has already developed phosphate-based electric batteries and hosts several specialized laboratories,” Sari said. He noted the country’s rich cobalt reserves, which rank 11th globally, as a major draw for battery manufacturers.

Sari added that EV batteries account for 50–60% of an electric vehicle’s total cost, underscoring the importance of securing production capabilities.

China’s Global Strategy

Nader Rong, a Chinese economic analyst and member of the Chinese Association for Middle East Studies, said Morocco is becoming a key Chinese investment hub for EV battery production. China is seeking manufacturing bases closer to Europe and North America to bypass tariffs and ease market access.

“Morocco offers a unique combination of natural resources, a stable investment climate, and an established automotive sector,” Rong said, adding that the country’s growing political and cultural ties with China support deeper economic cooperation.

Over the past 25 years, Morocco has positioned itself as a major industrial hub in automotive and aerospace manufacturing, increasingly integrating into global value chains.