Gotion Power Morocco secures €100M loan for LFP battery project
The African Development Bank Group, which approved the loan, also plans to mobilise up to an additional EUR 141 million from financial partners to support the implementation of this strategic project in Morocco.
The Board of Directors of the African Development Bank Group (AfDB) has approved an EUR 100 million loan to Gotion Power Morocco to finance the development of an integrated cathode-to-cell lithium iron phosphate (LFP) battery gigafactory in the Rabat-Salé-Kénitra Free Trade Zone, Morocco.
The Bank also plans to mobilise up to an additional EUR 141 million from financial partners to support the implementation of this strategic project, acting as Mandated Lead Arranger under the New African Financial Architecture for Development (NAFAD), according to a press release.
Led by Gotion High-Tech Co. Ltd., a battery manufacturer headquartered in Hefei, China and listed on the Shenzhen Stock Exchange, the project will establish the first integrated battery manufacturing plant in Africa and the Middle East and North Africa (MENA) region, producing 10 GWh of battery cells and packs for electric vehicles in Phase 1, with plans to expand capacity to 100 GWh, the press release said.
“Battery storage is the missing link in Africa’s clean energy transition,” Kevin Kariuki, the Bank Group’s Vice President for Power, Energy, Climate and Green Growth, said. “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 gigafactory will be a major catalyst for strengthening Morocco’s industrial competitiveness and for accelerating its emergence as Africa’s manufacturing hub for sustainable mobility industries,” Achraf Tarsim, the African Development Bank Group’s Country Manager for Morocco, said. “It will help foster an African industrial ecosystem for batteries and electric vehicles while promoting the local beneficiation of critical minerals essential to the energy transition.”
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