Morocco signs MoU for US$6.4 Billion EV Battery Plant
China's Gotion High-Tech would build the 100GWh production complex in Rabat.
Morocco has signed a memorandum of understanding (MoU) with China's Gotion High-Tech for the development of a US$6.4 billion electric vehicle battery-making complex, Reuters news agency has reported.
It would be the first large-scale battery factory in Africa.
The agreement involves the construction of a 'giga factory' in Rabat, with an annual production capacity of 100GWh, creating about 25,000 jobs.
Reuters said the Moroccan Agency for Investment and Export Development (AMDIE) gave no details about when a final investment decision would be made.
“Signing the memorandum of understanding is a necessary first step before signing the investment agreement, which will allow the launch of the giga factory to strengthen the country’s position in the automotive industry,” Mohcine Jazouli, Morocca's Minister of Investment stated.
Morocco has been pitching itself as good location for electric vehicle battery factories because of its existing automotive manufacturing capacity, strong renewable energy sector and access to raw materials, including cobalt and phosphates.
The kingdom is home to production plants for Renault and Stellantis, with a combined capacity of 700,000 vehicles, and a cluster of car part makers. Local firm Neo Motors will also begin production of the first Moroccan car brand later this year, with a projected annual capacity of 27,000 units.
In 2022, the automotive sector was Morocco's biggest industrial exporter at US$11.1 billion.
Photo: Electric car lithium battery pack (© Erchog | Dreamstime.com)