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Oct 28, 2023

MoU inked to develop $6.4bn battery manufacturing complex in Morocco

Moroccan officials said the country is keen to collaborate with other companies

Moroccan officials said the country is keen to collaborate with other companies in the renewable energies and electric transport sector including the Volkswagen Group

A memorandum of understanding (MoU) between Hefei-based Gotion High-Tech and Moroccan officials has been inked. The MoU opens the door for the Chinese electromotive group to invest US $6.4bn into the development of a battery manufacturing complex in the country.

According to a report, Gotion High-Tech specialises in energy storage products and has operations in China, Singapore, Germany, and California. It last year achieved 122% revenue growth to reach $3.2bn and said it intends to enter Africa with a gigafactory in Rabat, with an annual production capacity of 100GWh, creating around 25,000 jobs.

Moroccan Investment Minister Mohcine Jazouli said the agreement was a "necessary first step before signing the investment agreement, which will allow the launch of the gigafactory to strengthen the country's position in the automotive industry". He also noted that Morocco was aiming to collaborate with companies in the renewable energies and electric transport sector, citing Volkswagen Group as an example.

The MoU was signed by Gotion High-Tech's President, Li Zhen. He said his group was looking forward to contributing to the global development of green mobility and praised Morocco's "enchanting landscapes and inclusive culture".

The Moroccan automotive sector is said to be one of the strongest in Africa. In 2018, it passed South Africa as the continent's biggest exporter of passenger cars and last year experienced a 10% growth in production. The government has put in place many measures to attract foreign investors, such as high-quality infrastructure, engineering training, and tax benefits, the report noted.

Morocco has several pertinent raw materials including cobalt and phosphates, and free trade agreements with the EU and the US. In the past year alone, Morocco exported 480,000 vehicles worth $11.1bn to 75 countries, a 33% increase on the previous year, the report concluded.