Production at the Gotion High Tech Morocco gigafactory is scheduled to begin in 2026

China’s Gotion High Tech (002074.SZ) will begin production at a gigafactory in Morocco in the third quarter of 2026, according to Hicham Chaoudri, director at the investment department.

Gotion High Tech recently announced a significant investment agreement with the Moroccan government. The deal involves the establishment of a battery production plant in Kenitra, located north of Rabat, with a total investment of $1.3 billion.

“This investment is truly groundbreaking, as it will be the first gigafactory in Africa,” Chaoudri informed Reuters. He emphasized that construction is set to begin in a matter of weeks.

The plant will not only manufacture batteries, but also produce essential components such as cathodes and anodes. The majority of the production will be focused on exports, according to Chaoudri.

Gotion High Tech intends to expand the plant’s capacity from 20 GWh to 100 GWh, with a potential investment of $6.5 billion, as stated by the Moroccan government.

According to an expert in energy policy analysis, the investment would greatly benefit the country’s efforts to attract more manufacturers in the EV battery supply chain. This is crucial as the automotive sector aims to adapt to the requirements of the electric vehicle industry.

“By making these investments, our goal is to protect 220,000 jobs in the automotive sector as it transitions from combustion engines to electric ones,” he stated.

In 2023, Morocco’s automotive sector emerged as the leader in the country’s industrial exports, reaching a remarkable $14 billion. This represented a significant growth of 27% compared to the previous year.

Morocco houses production plants of automakers Stellantis and Renault, with a combined annual production capacity of 700,000 cars, along with a group of local suppliers.

With its favorable geographic location near Europe, free trade agreements with important EU and U.S. markets, and a well-established automotive industry, the country has become an appealing destination for Chinese EV battery manufacturers.

In May, Chinese auto battery manufacturers Hailiang and Shinzoom revealed their intentions to establish two new facilities near Tangier. These plants will focus on the production of essential components for electric vehicle batteries, specifically copper and anodes.

In a recent development, the Moroccan government has approved the construction of a factory near Tangier by BTR New Material Group (835185.BJE), a prominent Chinese electric battery maker. The factory will focus on producing cathodes, which are crucial components in electric batteries.

Yet another Chinese manufacturer, CNGR Advanced Material (300919.SZ), is planning to establish a cathode plant in Jorf Lasfar, located 100 km (62 miles) south of Casablanca. The Moroccan government has designated 283 hectares of land in this area for electric battery industries.

“We are currently in discussions with other manufacturers … additional investments are on the horizon,” Chaoudri stated.