Gotion plans for a $1.4 bn EV battery gigafactory in Morocco

The Moroccan government has recently signed an investment agreement with the Chinese battery firm Gotion High-Techfor establishing a battery gigafactory in the country. The facility targets an initial manufacturing capacity of 20 GWh at the cost of $1.4 billion investment, according to media reports. 

At later stages, Gotion is said to have planned to increase the plant's capacity to 100 GWh, with the final investment reaching up to $6.5 billion, the news reports add. 

Geographical proximity to Europe, free-trade agreement to several EU markets, and strong automotive manufacturing base in the North African country are said to be the pull factors for basing the battery plant in Morocco. 

Gotion, backed by the Volkswagen Group with a 26.47 percent stake, is targeting 300 GWh of planned global battery capacity, of which about 100 GWh is targeted at oversees market out of China. The company is already rolling out battery packs from its plants in Germany, Thailand and the United States. 

Apart from e-mobility related battery business, the company is also exploring new models of cooperation and development on energy storage and new material development, with the goal of "becoming a global leader in green energy solutions."

Recently, Gotion High-Tech signed a cooperation agreement with Spain's Phi4Tech Technology Group and Unicorn RE Investment Group towards a comprehensive cooperation with its partners in the European energy sector. 

The company is planning to establish energy storage stations in Spain in the coming years, and aims new growth opportunities for its European-African division in the energy storage market, while also creating new prospects for the development of the new energy industry chain in Southern Europe.