Morocco and China Join Forces on Africa’s First Battery Gigafactory

In Kenitra, Morocco, a $5.6 billion investment deal between Morocco and Chinese battery giant Gotion High-Tech is set to transform Africa’s role in the global clean energy transition. The project, which will build the continent’s first battery gigafactory, is more than an industrial undertaking. It is a strategic alliance that blends economics, geopolitics and social transformation.

In decades, Morocco has been known for agriculture, textiles, and more recently, renewable energy initiatives like solar and wind. Now, the North African kingdom is setting its sights higher: becoming a linchpin in the world’s electric vehicle (EV) supply chain.

Construction of the gigafactory in Kenitra, northwest Morocco, is slated to begin soon, with the first phase expected to be operational by the third quarter of 2026. Initially, the plant was set to deliver a capacity of 20 gigawatt-hours (GWh) annually, which is enough to power hundreds of thousands of electric cars, before scaling up to an ambitious 100 GWh in later phases. The initial investment of $1.3 billion will not only create a facility but also an ecosystem: nearly 17,000 jobs, both direct and indirect, are projected. For Morocco, where youth unemployment hovers around 27%, the social impact could be transformative.

Unlike many industrial ventures in Africa that are limited to assembly, the Kenitra gigafactory will manufacture critical components such as cathodes and anodes. This vertically integrated model reduces reliance on imports and positions Morocco as a serious competitor in global battery manufacturing.

An estimated 85% of the plant’s output will be exported to the European Union, a market under pressure to accelerate its transition away from fossil fuels. With the EU’s 2035 ban on new combustion engine vehicles looming, Morocco’s geographic proximity and trade agreements with Europe give it a unique competitive advantage.

Morocco is no longer just a low-cost assembly hub. It is becoming a high-tech manufacturing powerhouse, tied directly into one of the most strategic sectors of the 21st century.

Politically, the deal underscores Morocco’s strategic balancing act. Traditionally tied to France, its former colonial power, Morocco is now deepening economic cooperation with China, while also keeping its doors open to the European Union and the United States.

By hosting Africa’s first gigafactory, Morocco sends a message: it intends not only to be a bridge between Africa and Europe but also a player in the global energy revolution. The project aligns with Morocco’s national goals of industrial diversification, talent retention and reduced dependence on vulnerable sectors such as agriculture, which is increasingly threatened by climate change. A Moroccan government official said that this is about sovereignty as much as economics. Moroccans are embedding themselves in a sector that defines the future, energy, mobility and sustainability.

To the Chinese, the gigafactory consolidates China’s growing industrial presence in Morocco. Beyond Gotion High-Tech, other Chinese companies such as BTR, CNGR, Hailiang and Shinzoom are investing in the country’s emerging battery ecosystem.

The investment comes at a pivotal moment: as Europe races to meet its green targets, Asian dominance in the battery market has raised concerns about supply chain vulnerabilities. Morocco offers China a strategic outpost that is both geographically close to Europe and politically stable compared to other parts of the region.

This partnership also reflects China’s broader Belt and Road strategy of deepening ties in Africa through infrastructure and industrial development, though in this case, it focuses on high-tech and clean energy rather than traditional construction projects.

On the ground, anticipation is palpable. In Kenitra, a city already home to an automotive hub with companies like Peugeot, the gigafactory promises not only new jobs but also the development of local expertise in a cutting-edge industry.

For Morocco’s growing class of engineers and technicians, the project offers a chance to remain in the country rather than seek opportunities abroad. To small businesses, it could spark a boom in secondary industries, from logistics to housing, even to local services that will support factories and its workforce. Even then, Moroccans see this gigafactory as more than a factory. They see it as hope for our young people. To them, it means skills, jobs, a great future, enablement of wealth creation, good life, etc.

Morocco’s gamble raises bigger questions for the continent. Could other African nations leverage similar partnerships to break into global high-tech industries, rather than remaining dependent on raw material exports? Well, if successful, the Kenitra gigafactory could become a blueprint: combining foreign investment, local talent and strategic geography to carve out a place in the world’s clean energy map.

The path, nevertheless, is not without challenges. Financing for later phases of the project must still be secured and the volatile dynamics of the global energy market could reshape demand forecasts. There is also the question of balancing Morocco’s growing dependence on Chinese capital with its Western alliances. But if all goes as planned, Morocco will emerge as more than just a host country, it will be a co-architect of Africa’s energy future.

As the foundations are laid in Kenitra, the project stands as a powerful reminder that global transitions are never only about technology. They are about people, politics and vision. And in this case, they are about a small North African kingdom positioning itself at the heart of a historic shift.