China’s Gotion High-Tech is set to build Morocco’s first electric vehicle (EV) battery gigafactory with an investment of 12.8 billion dirhams (US$1.3 billion), according to the Moroccan government. As China's fourth-largest EV battery maker, Gotion is joining other Chinese firms in boosting Morocco's growing automotive sector to meet rising EV demand.
An investment agreement was signed for the gigafactory, which will initially have a battery capacity of 20 gigawatt hours (GWh). The prime minister’s office stated that Gotion plans to expand the plant's capacity to 100 GWh, potentially raising the total investment to US$6.5 billion.
Morocco's strategic location near Europe, free-trade agreements with the EU and US, and established automotive industry make it an appealing destination for Chinese EV battery manufacturers. Recently, Hailiang and Shinzoom, two other Chinese car battery companies, announced plans to build plants near Tangier for producing essential EV battery components: copper and anodes, respectively.
Additionally, in April, BTR New Material Group received approval to construct a cathode factory near Tangier. CNGR Advanced Material is also expected to establish a cathode plant in Jorf Lasfar, located 100 km south of Casablanca, on land allocated by the government for the EV battery industry.
In 2023, Morocco's automotive sector led the country’s industrial exports, reaching US$14 billion, a 27 percent increase from the previous year. The nation hosts production plants for carmakers Stellantis and Renault, with a combined annual capacity of 700,000 vehicles, and supports a network of local suppliers.
Morocco’s evolving automotive sector and strategic advantages position it as a significant hub for Chinese EV battery investments, aiming to capitalize on the burgeoning global demand for electric vehicles.