Gotion gigafactory construction set to begin in Kenitra

Friday 23 May 2025 - 08:50

Construction of Africa’s inaugural gigafactory is poised to commence within days in Kenitra. Gotion Power Morocco has completed the preparatory groundwork for this monumental battery manufacturing facility.

The Sino-European electric vehicle battery powerhouse signed a significant investment agreement with the Moroccan government in June 2023. This comprehensive accord entails a remarkable $6.5 billion commitment spread across five developmental phases.

Khalid Qalam, Gotion’s Moroccan director, revealed the impending construction launch during an industrial conference in Rabat. With earthworks now complete, production is scheduled to begin in the third quarter of 2026.

The initial phase of the project will require $1.3 billion in capital expenditure, aiming for a manufacturing capacity of 20 gigawatts. Government negotiations have facilitated approval for an expansion to 40 gigawatts in the second phase, eventually reaching a total capacity of 100 gigawatt-hours across all phases.

The facility is set to achieve remarkable vertical integration from the outset, with nearly 70% of battery production costs sourced domestically. This unprecedented localization strategy positions Morocco competitively against global counterparts.

Manufacturing will encompass batteries, cathodes, and anodes, with European markets identified as the primary export destination. Gotion has already secured numerous orders from European automotive manufacturers.

Phase one is expected to create 2,300 jobs, while the complete five-phase project will generate 10,000 positions across the industrial complex. Morocco’s automotive sector has demonstrated remarkable growth, with export revenues reaching MAD 157 billion ($15.7 billion) in 2024, marking a 6.3% annual increase. The country has outperformed China, Japan, and India to become the European Union’s leading automotive exporter in 2023.

Gotion anticipates catering to two primary market segments. Automotive applications will mainly target European manufacturers, alongside production zones within Morocco, where major players such as Renault and Stellantis have established operations.

Another critical market is energy storage, capitalizing on Morocco’s advantageous climate, which boasts approximately 300 sunny days annually. This climatic edge presents exceptional growth potential for renewable energy storage solutions.

Notably, two-thirds of Gotion’s revenue last year stemmed from energy storage applications, with the remaining third from mobility. The residential energy storage market is projected to experience significant growth over the next decade.

This project forms part of a broader trend of increasing Chinese investment in Morocco, with automotive investments reaching around $10 billion in recent years, supported by the Belt and Road Initiative.

Beijing perceives Morocco as a vital gateway to European markets, allowing Chinese firms to navigate tariff barriers effectively. The country’s advanced transport infrastructure, including the Tangier-Med port, alongside its rich phosphate reserves essential for battery production, further enhances its industrial appeal.

Morocco’s rapid transition to clean energy also boosts its attractiveness to foreign investors. Strategically positioned just south of Europe, Morocco benefits from its proximity and a comprehensive free trade agreement with the European Union, solidifying its role as a valuable partner in global supply chains.