The African Development Bank (AfDB) has approved a €100 million (approximately $114 million) loan to support the development of what is expected to become Africa’s first large scale battery gigafactory, a project that aims to strengthen the continent’s position in the global electric vehicle and clean energy supply chain.
The facility, being developed by Chinese battery manufacturer Gotion High-Tech, is planned for Morocco and will involve an estimated initial investment of about $1.3 billion. The integrated manufacturing complex is expected to produce lithium iron phosphate batteries, alongside key components including cathodes and anodes, according to project developers.
The AfDB said it would act as mandated lead arranger for the financing structure and seek to mobilise an additional €141 million from other financial partners. The financing forms part of broader efforts by African institutions to support industrial development, value addition and participation in emerging sectors linked to the global energy transition.
Morocco has increasingly positioned itself as a strategic destination for renewable energy and electric vehicle related investment, supported by its established automotive manufacturing base, infrastructure networks and geographic proximity to European markets. The country is already home to vehicle assembly operations and a growing ecosystem of automotive suppliers, creating conditions that have attracted investment from international companies seeking to diversify production locations.
The planned gigafactory is expected to manufacture lithium iron phosphate battery cells and associated materials, with much of the output intended for export markets, particularly in Europe. Demand for battery technologies has expanded significantly as governments and industries accelerate efforts to reduce carbon emissions and transition towards electric mobility.
For Africa, the development represents both an industrial opportunity and a test of how the continent can capture greater value from its natural resources and manufacturing capabilities. While many African countries possess significant deposits of minerals used in battery production, including lithium, cobalt, graphite and manganese, much of the continent’s mineral output has historically been exported in raw or minimally processed forms.
Morocco’s approach focuses on building manufacturing capacity closer to end markets, combining mineral processing, component production and industrial expertise. However, analysts note that the long term success of such projects will depend on factors including skills development, reliable energy supply, regional supply chain integration and the ability to create broader economic benefits beyond the factory itself.
The project also highlights the evolving nature of Africa’s engagement with global investment partners. Chinese companies have become significant investors in Africa’s industrial and infrastructure sectors, while African governments and institutions have increasingly sought partnerships that support domestic manufacturing, technology transfer and economic diversification.
The African Development Bank has identified industrialisation, energy transition and private sector development as key priorities in its development strategy. The bank’s support for Morocco’s battery manufacturing ambitions reflects a wider push to position African economies as participants in emerging industries rather than solely suppliers of raw materials.
As global competition for battery manufacturing capacity intensifies, Morocco’s gigafactory project could become a significant milestone in Africa’s efforts to develop higher value industrial capabilities and participate more actively in the global clean energy economy.
