Gotion to build $1.3bn EV battery plant in Morocco

Gotion to build $1.3bn EV battery plant in Morocco

Gotion to build $1.3bn EV battery plant in Morocco 150 150 Batteries International

June 14, 2024: Chinese battery giant, Gotion, will build Morocco’s first EV battery gigafactory.

The Volkswagen-partnered company has signed an investment agreement with the Moroccan government to build the gigafactory for 12.8 billion dirhams ($1.3 billion) the prime minister’s office confirmed on June 6.

The facility will have an initial battery capacity of 20GWh but Gotion plans to increase the plant’s capacity to 100 GWh and the final investment could reach $6.5 billion, according to the government report.

Morocco already has production plants for automakers Stellantis and Renault, with a total capacity of 700,000 vehicles per year.

It is this automotive sector along with its geographic proximity to Europe and free trade agreements with major markets in the EU and the US that make the country so attractive to Chinese EV battery makers.

Gotion has been accelerating its overseas expansion in recent years. In addition to the gigafactory in Morocco, the company has established a plant in Fremont, California where the first battery packs have already been produced. It is also planning larger battery factories in Illinois and Michigan.

Gotion is one of the world’s largest battery makers, ranking ninth globally with a 2.2% share of the world’s installed base of power batteries in January-April, according to South Korean SNE Research.

In 2020, Volkswagen Group China, became Gotion’s largest shareholder, a strategic partnership aimed at bringing greater market opportunities and resource advantages.