Less than a year after unveiling its plans to build a new 20 GWh battery factory for the European market, Gotion has ultimately chosen to establish it in Morocco. The Chinese company aims to secure a share of the European market.
Gotion specializes in manufacturing batteries and energy solutions, with support from major automotive players like Volkswagen. The company is looking to expand globally, and after initially announcing a factory project in Europe, Gotion has selected Morocco as the location. However, the Chinese manufacturer is primarily interested in the European market.
In September 2023, Gotion announced a 25% stake acquisition in the Slovakian start-up InoBat, which focuses on designing batteries for electric vehicles. This marked the first Chinese manufacturer investment in a European battery start-up. The idea of establishing a presence in Europe stemmed from this partnership.
Less than a year later, Gotion has chosen Morocco as its base. The initial factory capacity will be 20 GWh, costing 1.2 billion euros for construction. In the future, the factory could be expanded to achieve an annual capacity of 100 GWh, requiring an investment of 6 billion euros.
Morocco: An Increasingly Popular Destination?
Due to its proximity to the European market and free trade agreements with the European Union and the United States, Morocco is becoming a new hub for manufacturing technologies related to electric vehicles. Apart from Gotion, other major companies have expressed interest in setting up operations in the Maghreb country.
Chinese companies like BTR New Material Group, CNGR Advanced Material, Hailiang, and Shinzoom also plan to establish factories in Morocco. Additionally, Stellantis and Renault have their own production sites in the country. The automotive sector is Morocco’s top export industry, with 13 billion euros in 2023, marking a 27% increase from 2022.