AfDB Approves €100m Loan for Morocco Battery Plant

July 25, 2026
By Mintesinot Nigussie

The African Development Bank (AfDB) has approved a 100 million euro loan to finance the development of a lithium iron phosphate battery manufacturing plant in Morocco, marking a major step in the country’s effort to build an electric vehicle supply chain. The project, led by China-based battery manufacturer Gotion High-Tech Co. Ltd., will be developed in the Rabat-Salé-Kénitra Free Trade Zone and will produce battery cells and packs for electric vehicles.

The bank said it plans to mobilise an additional 141 million euro from financial partners to support the project, where it will act as Mandated Lead Arranger under the New African Financial Architecture for Development initiative. The facility is expected to produce 10 gigawatt-hours of battery cells and packs during its first phase, with plans to expand capacity to 100 gigawatt-hours. It will become the first integrated battery manufacturing plant in Africa and the Middle East and North Africa region, according to the AfDB.

The project is expected to create more than 600 direct jobs during its initial phase and achieve a local industrial integration rate of 70 percent, supporting the development of domestic industrial capabilities linked to electric mobility. Kevin Kariuki, AfDB’s vice-president for power, energy, climate and green growth, said battery storage would play a critical role in Africa’s transition towards cleaner energy systems. “Battery storage is the missing link in Africa's clean energy transition,” Kariuki said, adding that the facility would support renewable energy integration, industrial jobs and resilient supply chains.

The investment is being developed as Morocco seeks to expand its role in global automotive manufacturing by adding battery production capacity to its industrial base. Achraf Tarsim, AfDB’s country manager for Morocco, said the project would strengthen the country’s industrial competitiveness and support the development of an African ecosystem for batteries and electric vehicles. The bank said the project would also contribute to increasing local value addition of critical minerals linked to the energy transition and improve Africa’s participation in global clean energy and electric mobility value chains.

The investment aligns with AfDB’s strategic priorities of expanding resilient infrastructure, accelerating industrialisation, supporting value addition of African resources and strengthening regional integration, according to the bank.

Source: FSX Business News