Volkswagen Group and its partner invest in the electric vehicle battery sector in the Kingdom

Strengthening Kenitra’s position on the electric vehicle industry map

The city of Kenitra is moving steadily to consolidate its position as one of the vital hubs for the electric vehicle battery industry in the Kingdom. This shift follows the unveiling of new investment directions, moving from the manufacturing of traditional vehicles and components to more precise sectors related to electric mobility, primarily the production of batteries and their essential raw materials.

Details of the partnership between PowerCo and Gotion High-Tech

According to data reported by the «Asharq Bloomberg» platform from a spokesperson for PowerCo, a subsidiary of the German Volkswagen Group, the new project will be located in the Kenitra industrial zone. This project has attracted the interest of economic observers as it is the result of a long-term partnership between the German entity and its Chinese partner Gotion High-Tech.

Available data indicates that the joint venture’s capital structure grants the Chinese partner a 51% majority stake, while the German company retains a 49% stake. Both parties will jointly manage the project to ensure the success of this significant industrial step.

Production capacity and the importance of Lithium Iron Phosphate

The upcoming project focuses on the production of Lithium Iron Phosphate (LFP), an essential component in the manufacturing of energy cells for modern cars. According to announced estimates, the manufacturing capacity of this new plant is expected to reach up to 100,000 tons annually.

A new link in the Moroccan industrial ecosystem

This new project represents an additional and important link in an expanding industrial system within the Kingdom. This development reflects Morocco’s ability to attract major international investments in high-tech sectors, contributing to the support of the national economy and the creation of opportunities oriented towards the future of sustainable and electric mobility.