Morocco Kenitra Battery Hub Readies October Cell Line
Morocco's Kenitra battery hub is due to start its first cell line this month, as Volkswagen's PowerCo takes 49% of a planned US$537 million cathode plant. The post Morocco Kenitra Battery Hub Readies October Cell Line appeared first on The Rio Times .
Gotion High-Tech, a Chinese battery maker, and Volkswagen’s battery subsidiary PowerCo have formed a joint venture in Morocco to establish a €480 million ($537 million) cathode plant. The Kenitra battery hub, constructed by Gotion, will start its first cell production line in October 2026 and supply cathode material to new cell factories in Spain and Slovakia.
Volkswagen, through its battery arm PowerCo, will hold a 49% stake in the Moroccan project. The plant is designed to produce up to 100,000 tonnes of cathode material annually, primarily for cheaper batteries. The investment in Kenya, Slovakia and Morocco totals about €3.22 billion ($3.6 billion). The automotive industry is Morocco’s largest export sector, and the government aims to transition from assembling cars to producing high-value parts, with batteries being the most significant component.
Volkswagen expects LFP battery production to grow from 10% to 40-60% of the European market by 2030. The Kenitra plant is seen as a strategic move by Volkswagen, leveraging Morocco’s free trade agreement with the United States and its proximity to Spain. However, the deal still requires approval from Gotion's shareholders and regulatory clearances in China and the involved countries.
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