Morocco Partners with China’s Gotion High-Tech for First EV Battery Gigafactory

The Moroccan government has formalized a landmark investment agreement with Chinese battery manufacturer Gotion High-Tech to construct the nation’s first electric vehicle battery gigafactory. As reported by Reuters, the initial investment for the facility, which will be located in the industrial city of Kenitra, is valued at 12.8 billion dirhams, equivalent to approximately $1.3 billion. The agreement also outlines plans to scale up the total investment to 65 billion dirhams, or roughly $6.4 billion, in subsequent development phases.

According to reports from Bloomberg, the gigafactory is projected to have an initial production capacity of 20 gigawatt-hours (GWh). This facility represents a major step forward in Morocco’s strategy to integrate itself into the global electric vehicle supply chain. By establishing localized battery manufacturing, Morocco aims to transition its existing automotive sector toward electric mobility, ensuring its long-term competitiveness in international markets.

The trade implications of this project are substantial, particularly for the Euro-Mediterranean region. Le Monde reports that the factory’s strategic location in Kenitra positions Morocco as a vital manufacturing and logistics hub bridging Africa and Europe. Morocco already boasts a well-established automotive export industry, and the addition of a domestic gigafactory will allow the country to offer fully integrated vehicle production. This capability is increasingly critical as European automakers seek nearshore supply chains to comply with stricter regional sourcing rules and reduce transportation emissions.

For Gotion High-Tech, the investment provides a strategic foothold close to the European market, which is rapidly transitioning away from internal combustion engines. According to Reuters, the partnership highlights the growing role of Chinese battery manufacturers in establishing global production networks. By investing in Morocco, Gotion can leverage the country’s favorable trade agreements and competitive operational costs while maintaining proximity to major European automotive assembly plants. The project underscores how foreign direct investment continues to reshape the geography of green energy manufacturing.

Industry observers cited by Le Monde indicate that Morocco’s stable regulatory environment and existing infrastructure were key factors in securing the deal with Gotion High-Tech. The country has spent years developing specialized industrial zones and deep-water port facilities, such as Tanger Med, to attract foreign industrial capital. This gigafactory project is expected to generate thousands of highly skilled jobs locally and foster a broader ecosystem of component suppliers and technical services within the region.

Furthermore, Bloomberg highlights that the phased expansion plan to 65 billion dirhams demonstrates a long-term commitment to scaling Morocco’s green energy manufacturing capabilities. As global demand for electric vehicles continues to rise, having a high-capacity gigafactory operational in North Africa could significantly alter regional trade dynamics, offering European car manufacturers a highly competitive and logistically convenient alternative to East Asian supply chains.