Morocco secures $114 million loan to build Africa’s first EV battery factory

Morocco has secured a $114 million loan from the African Development Bank to help finance the construction of what is being billed as Africa’s first electric vehicle battery gigafactory, marking a significant step in the country’s efforts to build manufacturing capacity for clean mobility technologies. The loan approval positions Morocco to host a large-scale battery production facility intended to supply regional and global EV supply chains.

"The African Development Bank has approved a $114 million loan to help finance the construction of Africa’s first electric vehicle battery gigafactory in Morocco, marking a milestone in the continent’s clean energy industrialization drive."

The financing was approved by the African Development Bank and targets the development of a gigafactory that would produce lithium-ion batteries for electric vehicles. The project is presented as an industrial milestone for Africa, where domestic battery manufacturing capacity is currently limited. The facility aims to localize a portion of the EV industry’s upstream manufacturing and to support broader ambitions for electrification and clean energy deployment on the continent.

Project details and stakeholders

• Loan amount: $114 million, approved by the African Development Bank.
• Location: Morocco, designated site for Africa’s first EV battery gigafactory.
• Product: Electric vehicle lithium-ion batteries for regional and potentially international markets.

While specific corporate partners, construction timelines and capacity targets were not detailed in the announcement, the loan approval by a major regional financier signals strong institutional support. The African Development Bank’s backing typically covers a mix of direct lending, guarantees and technical assistance aimed at crowding in private investment and de-risking large-scale industrial projects in member countries.

Morocco has been actively developing its automotive sector for years, attracting assembly and components manufacturers. The new gigafactory financing seeks to deepen that industrial base by adding high-value battery production to the country’s portfolio of automotive-related manufacturing. Proponents argue that local battery production can shorten supply chains, reduce import dependency, and create skilled jobs in manufacturing and engineering.

Analysts and government officials often cite the importance of integrating upstream battery manufacturing with local raw material processing, recycling and workforce training. Establishing a gigafactory typically involves complex procurement of cell-production machinery, securing battery-grade raw materials and building partnerships across vehicle makers, battery firms and materials suppliers. The $114 million financing is positioned as a catalyst intended to mobilize further capital from both public and private actors.

Outlook

The loan approval is likely to accelerate planning and early-stage development for the gigafactory, though detailed timelines for construction, start of production and full capacity were not included in the announcement. The project’s next phases will depend on finalizing investor agreements, technical partners, and additional funding to complement the African Development Bank loan.

If fully realized, the Morocco facility could become a regional hub for EV battery production and a testing ground for industrial policies to support the electrification transition in Africa. Continued financial support, private-sector commitments and clear industrial roadmaps will determine how quickly the gigafactory moves from financing approval to operational reality.