Africa’s largest EV battery factory to begin production in 2026

From the newsletter

Gotion High-Tech, a Chinese battery manufacturer and Volkswagen partner, will begin production of electric vehicle batteries at its Morocco gigafactory in the fourth quarter of 2026. It will be the largest EV battery factory in Africa with an initial production capacity of 20 GWh, with plans to expand to 100 GWh in the future. The initial investment is estimated at $1.3 billion.

• Gotion is the eighth-largest EV battery manufacturer in the world, and its investment will strengthen Morocco’s position as a key player in the global EV industry. The factory will be located in Kenitra, Morocco, and is expected to create 17,000 jobs.

• Morocco's strategic location and free trade agreements with the EU and the US make it an attractive hub for EV battery production. Several other Chinese battery companies, including BTR New Material Group, CNGR Advanced Material, Hailiang, and Shinzoom, are also setting up operations in Morocco. 

More details

• The company said this week that it will begin construction of the factory "within days." Gotion signed an investment agreement with the Moroccan government in June of last year to establish what will be Africa's first large-scale battery factory. Morocco invested $280 million in the plant and the project has a potential total investment of $6.5 billion. The company is mainly targeting to export the EV batteries to nearby Europe, where demand is very high. Europe imports batteries from China, but geopolitical tensions are forcing it to grow its own local production and shift sourcing from alternative suppliers such as Morocco.

• But Morocco is increasingly attracting the attention of policymakers in Europe and the US due to its dalliance with China, which is shifting its production there to evade tariffs. This could expose the North African country to tariffs, which could slow down its rapid momentum in the global automotive industry.  

• Some of the batteries could be used locally as Morocco itself has a robust automotive industry. Stellantis and Renault have mega car production factories in Morocco but they mainly make fuel cars which are exported to Europe. The North African country is however also looking to become an EV producer.

• Besides Gotion, BTR New Material Group is investing $500 million in a cathode factory in Morocco. CNGR Advanced Material Company is partnering with investment fund Al Mada to establish a $2 billion factory for a cathode active material production, while Guangzhou Tinci Materials Technology is also setting up a $2.8 billion battery materials plant.

• The global battery industry is booming, and Morocco could become a major hub for battery production globally should it continue to attract major investments. The global battery demand in the energy sector, including both EVs and storage applications, reached 1 TWh in 2024, a 25% increase from 2023. 

• While Africa has abundant wealth of minerals used to make batteries such as lithium, cobalt, copper and manganese, these minerals are mainly exported in raw form with the continent lacking a serious battery manufacturing industry. However, a number of African countries are now actively pursuing local battery manufacturing and EV assembly. 

Our take

• Morocco should increase efforts to attract investors from other regions such as Europe, Middle East and North America to reduce reliance on China. This could cushion it against global policy shifts and geopolitical realignments.

• An established battery manufacturing industry could prove pivotal in attracting EV manufacturers to Morocco. The country has a major automotive industry which it can leverage to produce EVs as demand grows both in Africa and worldwide.

• The current EV battery technology could become obsolete in the coming years as new technologies come along. African countries should be keen to not only invest in existing battery technology but keep an eye on new technologies that will make the batteries of the future.