INDUSTRY · MOROCCO
Key Facts
- —The country Morocco, a North African kingdom facing Spain across the Strait of Gibraltar, counts cars as its largest export sector and now wants battery work.
- —Why it matters Volkswagen is moving part of its European battery supply chain to Morocco, with a Chinese partner in which it is the largest shareholder.
- —Why now On Thursday 8 October, Le360, citing the weekly Challenge, called the Volkswagen cathode venture a striking sign of Morocco’s move up the battery chain.
- —What happened Gotion says the first cell line of its Kenitra battery gigafactory is due to start this month, with a second in November.
- —The deal On Monday 28 September, Gotion and Volkswagen’s PowerCo announced a joint venture for a cathode plant in Kenitra worth about €480 million (about US$537 million).
- —The numbers Gotion 51%, PowerCo 49%; up to 100,000 tonnes of LFP cathode material a year; part of a €3.22 billion (about US$3.6 billion) three-country plan.
- —What it means for US readers Volkswagen’s US-traded shares gain a cheaper LFP supply route, while Gotion, whose Michigan plant the state terminated in 2025, deepens its role in Volkswagen’s chain.
- —Still open The final investment agreement is unsigned. Gotion shareholders and regulators in China and abroad must still approve, and there is no start date for the cathode plant. No launch of the first cell line had been announced by Friday morning.
Morocco’s first battery gigafactory, built by the Chinese battery maker Gotion High-Tech in Kenitra, is due to start its first cell production line this month, according to Gotion. The Kenitra battery hub is also set to gain a €480 million (about US$537 million) cathode plant, announced on Monday 28 September, in which Volkswagen’s battery arm PowerCo will take 49%. For US readers it shows a German carmaker building its cheaper electric-car supply chain in Africa with a Chinese partner.
The plant will make lithium iron phosphate (LFP) cathode material, a core ingredient of cheaper batteries. It will supply two new cell factories in Spain and Slovakia that Volkswagen and Gotion are also building together.
Euro amounts are converted at the European Central Bank reference rate of US$1.1186 per euro on Thursday 8 October.
What Volkswagen and Gotion Agreed
Gotion High-Tech is a Chinese battery maker listed in Shenzhen. Volkswagen’s Chinese investment arm owned 24.28% of it on 20 September, making the carmaker its largest shareholder. That figure comes from Gotion’s stock exchange filing, reported by CnEVPost.
PowerCo SE is Volkswagen’s battery subsidiary. In its press release, Volkswagen said Gotion will hold 51% of the Kenitra venture and manage it jointly with PowerCo.
PowerCo will invest about €470 million (about US$526 million) by 2030 for its 49% stakes, Volkswagen said. That sum covers Kenitra and the Slovak plant at Šurany. Gotion’s filing puts the Moroccan project alone at about €480 million (about US$537 million).
Across Spain, Slovakia and Morocco, the two companies plan to invest about €3.22 billion (about US$3.6 billion). Gotion’s share is about €1.6 billion (about US$1.79 billion) and PowerCo’s about €1.62 billion (about US$1.81 billion), paid in stages.
The Kenitra plant is designed to produce up to 100,000 tonnes of cathode material a year. The filing and Le360, the Moroccan news site, both give that figure. Its output will go first to the Spanish and Slovak cell plants.
Thomas Schmall is Volkswagen’s board member for technology and chairs PowerCo’s supervisory board. He said Gotion “has been a close partner of the Volkswagen Group for many years” (translated from German).
Why Morocco Wants the Kenitra Battery Chain
Morocco already builds cars for export. The automotive industry is its largest export sector, according to Le360. The government wants to move from assembling cars to making the parts that carry most of their value.
Batteries are the biggest of those parts. On Thursday 8 October, Le360 cited the weekly magazine Challenge. It called the Volkswagen and Gotion project a striking example of that shift.
The same report gave the plan its limits. Experts quoted there said Morocco must now move beyond low costs towards battery chemistry, engineering and applied research.
Gotion is also building a separate battery gigafactory in the Kenitra free zone. Morocco World News reports that its first phase is designed for 10 GWh of cells and packs.
According to the latest information from Gotion, reported by Le360 on 28 September, the gigafactory’s first cell production line is due to start in October 2026, followed by a second in November.
In July, the African Development Bank approved a €100 million (about US$112 million) loan to Gotion Power Morocco for that factory.
What It Means for US Readers
Volkswagen shares trade in the United States as American depositary receipts. For holders, the deal is part of a bet on cheaper LFP batteries for lower-priced electric cars in Europe.
Volkswagen says LFP could rise from about 10% of the European market today to 40% to 60% by 2030. It adds that Europe has almost no relevant LFP production capacity yet.
Gotion carries political history in the United States. In October 2025, Michigan moved to terminate its planned US$2.36 billion battery plant near Big Rapids, Michigan Public reported. The state sought to claw back US$23.6 million.
Morocco offers the companies a different setting. It has had a free trade agreement with the United States since 1 January 2006, according to the US Trade Representative. It also sits a short sea crossing from Spain.
For now the Kenitra output is aimed at European cell plants, not American ones. Any US trade effect would be indirect, through cheaper Volkswagen cars in Europe and a deeper China link in its supply chain.
Related: Morocco Automotive Exports Rise 17.4% to US$10.06bn as World Cup Debt Looms and Volkswagen Restructuring: US$18.6 Billion Earmarked for Cuts and Plants.
What Is Not Known
The companies have not yet signed the final investment agreement, Gotion’s filing says. The deal still needs approval from Gotion’s shareholders and from regulators in China and the other countries involved.
No start date has been given for the cathode plant. The filing says each project should take no more than five years to build, depending on actual progress.
For the Kenitra battery venture, Gotion itself warns that financing, approvals and market changes could affect construction and expected returns.
It is also not confirmed whether the gigafactory’s first line has started this month as planned. Neither Gotion nor the Moroccan government had announced a launch by Friday morning.
Frequently Asked Questions
What is the Kenitra battery project with Volkswagen?
Gotion High-Tech and Volkswagen’s battery unit PowerCo plan a joint venture in Kenitra, Morocco, to make LFP cathode material. Gotion will own 51% and PowerCo 49%.
How much will the plant cost?
Gotion’s filing puts the Moroccan project at about €480 million (about US$537 million). It is part of a €3.22 billion (about US$3.6 billion) plan across three countries.
Where will the output go?
The plant is designed for up to 100,000 tonnes of cathode material a year. It will supply new cell plants in Valencia, Spain, and Šurany, Slovakia, first.
Is the deal final?
No. The investment agreement is not yet signed, and the plan still needs Gotion shareholder approval and regulatory clearances in China and abroad.
Why does it matter to Americans?
Volkswagen’s US-traded shares are exposed to its battery strategy. Gotion also remains under US political scrutiny after Michigan terminated its planned plant in 2025.
Sources: Volkswagen Group press release (via pv magazine) · CnEVPost on Gotion filing · Le360 (28 Sep) · Le360 (8 Oct) · Morocco World News · Michigan Public · USTR · ECB
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
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