Morocco, Joint venture between Gotion High-Tech and PowerCo in the electric vehicle battery sector

Morocco has attracted a major investment in the electric vehicle battery sector with a joint venture announced in Kenitra between Gotion High‑Tech and PowerCo, a Volkswagen Group company. The project involves an investment of approximately €480 million to build a plant producing LFP (lithium iron phosphate) cathode materials with an annual capacity of up to 100,000 tonnes, linking Kenitra to industrial operations in Spain and Slovakia and forming a cross‑Mediterranean production chain for battery components.

"The joint venture... marks a new step in the Kingdom’s integration into the strategic supply chain for electric mobility batteries," the announcement said.

The planned facility in Kenitra will manufacture LFP cathode materials, a chemistry increasingly favoured for certain classes of electric vehicles and energy storage because of its thermal stability, long cycle life and lower reliance on nickel and cobalt. The reported output of up to 100,000 tonnes per year positions the plant as a sizeable supplier of cathode material on a regional scale.

Project details highlight deliberate industrial coordination: materials produced in Morocco are expected to feed into battery cell and vehicle manufacturing investments already developed by Gotion and Volkswagen Group affiliates in Spain and Slovakia. That arrangement creates an integrated supply chain spanning both shores of the Mediterranean, with Kenitra functioning as a production node complementing European sites.

• Investors: Gotion High‑Tech and PowerCo (Volkswagen Group)
• Location: Kenitra, Morocco
• Investment: approximately €480 million
• Product: LFP (lithium iron phosphate) cathode materials
• Capacity: up to 100,000 tonnes per year

"Kenitra will be linked to other industrial projects developed by Gotion and Volkswagen in Spain and Slovakia," the announcement noted, underlining the cross‑border nature of the supply chain being constructed.

Observers point to several competitive advantages that make Morocco an attractive site for this kind of industrial investment: geographic proximity to Europe, established automotive manufacturing clusters, developing infrastructure, and expanding renewable energy capacity. The new project extends Morocco's role beyond vehicle assembly toward higher levels of the electric mobility value chain, including advanced materials production.

Integration of the Kenitra plant with operations in Spain and Slovakia aims to deliver industrial complementarity: feedstock and cathode materials produced in Morocco could be processed into battery cells in European facilities or used directly in assembly lines, shortening logistics routes and diversifying supply sources for manufacturers.

Analysts say the joint venture reflects wider strategic priorities in Europe to build resilient, diversified battery supply chains while leveraging competitive production platforms in neighbouring regions. As one summary of the initiative put it, "Kenitra is establishing itself not merely as an automotive hub, but as a key new Euro‑Mediterranean node in the battery industry."

Outlook: If realised at the announced scale, the €480 million facility will materially increase LFP cathode material availability for regional battery makers and OEMs, supporting production capacity in Spain, Slovakia and elsewhere in Europe. The project could also stimulate local upstream and downstream activity in Morocco—ranging from logistics and industrial services to renewable energy integration—while contributing to broader efforts to regionalise and secure critical components for electric mobility.