China’s Gotion High Tech has revealed plans to build the first-ever $1.3 billion EV battery gigafactory in Morocco, which would be a major step forward for the global electric vehicle (EV) sector. The Moroccan government announced this investment on Thursday, marking a significant advancement in Morocco’s attempts to establish itself as a major participant in the EV supply chain.
The gigafactory’s construction coincides with Morocco’s increased efforts to modify its rapidly growing automotive industry in order to satisfy the growing demand for electric automobiles around the world. factory, which represents a strategic collaboration between the Moroccan government and Gotion High Tech, will initially boast a production capacity of 20 gigawatt-hours (GWh). Prime Minister’s office representatives have indicated intentions to possibly expand this capacity to 100 GWh, with additional investments possibly reaching up to $6.5 billion.
Morocco is more appealing to Chinese EV battery producers as an investment destination because of its advantageous location in relation to European markets and its free trade agreements with the US and the EU. This favorable position is further reinforced by the large automobile sector that now exists in the nation.
Chinese companies have shown a renewed interest in Morocco’s capacity to produce EV batteries in recent months. Battery producers Hailiang and Shinzoom both revealed plans to build production facilities close to Tangier in May. Their projects would concentrate on producing anodes and copper, two essential parts of EV batteries. Furthermore, the Moroccan government gave BTR New Material Group permission in April to establish a plant close to Tangier to produce cathodes, which are essential parts of batteries.
Furthermore, CNGR Advanced Material, another Chinese company, plans to build a cathode production facility in Jorf Lasfar, which is around 100 kilometers south of Casablanca. The Moroccan government is committed to become a major hub in the EV industry, as evidenced by the 283 hectares it has set aside in this area exclusively for the growth of the electric battery sectors.
Leading the country’s industrial exports, Morocco’s automobile sector saw notable expansion in 2023 with 27%, totalling $14 billion. Major automakers like Stellantis and Renault, with a combined yearly production capacity of 700,000 vehicles, already call the nation home, along with an extensive list of regional suppliers.
