Gotion High Tech Morocco gigafactory to start production in 2026

China's Gotion High Tech will start production at a gigafactory it plans to build in Morocco in the third quarter of 2026, Hicham Chaoudri, director at the investment department said on Friday.

Gotion High Tech signed an investment deal with the Moroccan government on Thursday to set up a $1.3 billion battery production plant in Kenitra, north of Rabat.

"This is a historic investment marking the first gigafactory in Africa," Chaoudri told Reuters, noting that construction will start within weeks.

In addition to batteries, the plant will also produce key ingredients cathodes and anodes, with the bulk of production geared to exports, Chaoudri said.

Gotion High Tech plans to increase the plant's capacity to 100 gigawatts per hour (GWh) from a starting capacity of 20 GWh, with eventual investment that could amount to $6.5 billion, the Moroccan government said in a statement.

The investment would have a beneficial impact on the country's push to attract more manufacturers across the EV battery supply chain, as it seeks to adapt its automotive sector to electric vehicle industry requirements, he said.

"Through such investments, we are seeking to preserve 220,000 jobs in the automotive sector as it shifts from combustion to electric engines," he said.

The automotive sector topped Morocco's industrial exports at $14 billion in 2023, up 27% on the previous year.

Morocco is home to production plants of automakers Stellantis and Renault with an annual combined production capacity of 700,000 cars as well as a cluster of local suppliers.

The country's geographic location close to Europe, its free trade agreements with key EU and U.S. markets and its existing automotive industry make it attractive to Chinese EV battery makers.

In May, Chinese auto battery manufacturers Hailiang and Shinzoom announced plans to set up two separate plants near Tangier, that would produce key EV battery ingredients: copper and anodes respectively.

A month earlier, the Moroccan government gave the green light for Chinese electric battery maker BTR New Material Group to build a factory near Tangier to produce key component cathodes.

Another Chinese manufacturer, CNGR Advanced Material plans a cathode plant in Jorf Lasfar, 100 km (62 miles) south of Casablanca, where the government has allocated 283 hectares to electric battery industries.

"We are negotiating with other manufacturers ... other investments are coming," Chaoudri said.