Plans for Gotion’s battery factory in Morocco take shape

The Chinese battery cell manufacturer and Volkswagen partner Gotion High-Tech has signed an investment agreement with the Moroccan government for a battery cell factory in the country. The initial production capacity will be 20 GWh, but this figure could increase significantly at a later date.

Image: Gotion High-Tech

The factory will initially be designed for an annual capacity of 20 GWh with investments totalling around 1.3 billion US dollars, as Reuters cites the Moroccan government. However, it remains to be seen when exactly construction will begin or when production will start. There is also no word yet on the type of battery cells that could be manufactured there. However, the company specialises in LFP cells and offers LMFP cell chemistry with an additional manganese component in the cathode.

Gotion plans to increase capacity to 100 GWh at a later date, with the final investment will be USD 6.5 billion. However, it is not known by when and under what conditions the decision on the expansion(s) will be made.

Gotion High-Tech and the Moroccan government had already signed a letter of intent for the battery factory a year ago. Even then, there was talk of up to 100 GWh, but the information available was still thin on the ground. For example, no dates were given for the factory construction schedule.

However, the reasons why Gotion decided in favour of Morocco are much clearer. The North African country is geographically favourable to Europe, and there are also free trade agreements with the EU and, for example, the US. And the (electric) car industry is also growing in Morocco. Stellantis and Renault operate plants there, with a total output of around 700,000 vehicles per year.

With this in mind, various Chinese battery companies have already set up operations in Morocco. In the harbour city of Tangier (not far from the Strait of Gibraltar), Hailang and Shinzoom are planning to set up plants for copper foils and battery anodes, while the BTR New Material Group wants to build a factory for the production of cathode components there. CNGR Advanced Material is planning its cathode material factory in Jorf Lasfar, about 100 kilometres south of Casablanca.

reuters.com

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