Chinese battery giant Gotion High-tech, backed by Volkswagen, has received a significant investment of 300 million euros ($280 million) for its battery project in Morocco from the country’s financial institution, CDG Group.
The memorandum of understanding was signed on November 13 between Gotion and CDG Group, Morocco’s largest public financial investment institution. The investment will be utilized in the first phase of Gotion’s Moroccan project, covering power batteries, energy storage batteries, and cathode and anode materials. Additionally, CDG Group will provide support for Gotion’s operations in Morocco.
The project is expected to create more than 2,000 local jobs in its initial phase, contributing to the economic development of the region. Morocco aims to generate 50 percent of its electricity from renewable energy sources by 2030, leveraging its abundant solar and wind energy resources.
Khalid Safir, chairman of CDG Group, highlighted the importance of the partnership in increasing local energy storage levels and improving the energy mix in Morocco and Africa. The project aligns with Morocco’s strategy for developing a sustainable transport ecosystem and transitioning towards electrification in the automotive sector.
Gotion’s chairman, Li Zhen, expressed the company’s commitment to bringing advanced production lines, technology, and management to Morocco. The collaboration with CDG Group aims to establish the project as a benchmark for energy transformation in the region.
In June, Gotion signed an investment agreement with the Moroccan government for a battery factory with an initial capacity of 20 GWh and a total investment of 12.8 billion dirhams ($1.3 billion). The project has the potential to expand its capacity to 100 GWh, with a final investment reaching $6.5 billion.
Morocco’s strategic geographical location, free trade agreements with key markets, and existing automotive sector make it an attractive destination for Chinese EV battery manufacturers. Gotion is among the world’s largest EV battery makers, holding a 2.5 percent market share globally in the January-September period, according to SNE Research.
The partnership between Gotion and CDG Group marks a significant milestone in advancing sustainable energy solutions in Morocco and driving the growth of the renewable energy sector in the region.
