China's Gotion High Tech to build $1.3 billion EV battery gigafactory in Morocco

China's Gotion High Tech will invest 12.8 billion dirhams ($1.3 billion), to build Morocco's first EV battery Gigafactory, the government said Thursday according to Reuters.

Gotion High Tech is the latest company to invest in EV battery manufacturing in Morocco, as the country seeks to align its growing automotive sector with increasing global demand for electric vehicles.

The Moroccan government and Gotion High Tech signed an investment deal for the gigafactory which will have an initial battery capacity of 20 gigawatts per hour (GWh), the prime minister’s office said in a statement.

Gotion High Tech plans to increase the plant's capacity to 100 GWh, entailing an increased investment up to $6.5 billion, the prime minister's office added.

Morocco's geographic location close to Europe, its free trade agreements with key EU and U.S. markets and its existing automotive industry make it an attractive destination for Chinese EV battery makers.