The African Development Bank (AfDB) has approved a €100 million ($114 million) loan to support the development of Africa’s first battery gigafactory in Morocco, reinforcing the country’s ambition to become a major electric vehicle manufacturing and battery production hub. According to Reuters and AP News, the project is being developed by China’s Gotion High-Tech and will require an initial investment of about $1.3 billion to build an integrated lithium iron phosphate battery facility that will manufacture battery cells, cathodes and anodes primarily for export to European markets.
The financing will support construction of the gigafactory, while the AfDB also plans to mobilise up to an additional €141 million from development finance partners as the mandated lead arranger. The project leverages Morocco’s established automotive manufacturing ecosystem, proximity to Europe and expanding renewable energy capacity, positioning the country as an attractive destination for global electric vehicle supply chain investments. “Battery storage is the missing link in Africa’s clean energy transition,” AfDB Vice President for Power, Energy, Climate and Green Growth Kevin Kariuki said in a statement.
The investment represents a strategic milestone for Africa’s industrialisation agenda, extending Morocco’s role beyond vehicle assembly into higher-value battery manufacturing. For business leaders and investors, the project strengthens regional supply chains for critical clean energy technologies, enhances Africa’s participation in the global EV market and could attract further foreign direct investment into battery materials, manufacturing and related industries. The facility is also expected to support local manufacturing capacity while serving growing European demand for EV batteries.
Looking ahead, the successful delivery of the project could accelerate Morocco’s emergence as a regional electric mobility hub while demonstrating Africa’s capacity to host advanced manufacturing linked to the global energy transition. The additional financing being arranged by the AfDB and the project’s planned expansion over time will be closely watched by investors, policymakers and manufacturers assessing future opportunities across the continent’s clean technology sector.
