Gotion High Tech signed an investment deal with the Moroccan government on Thursday to set up a $1.3 billion battery production plant in Kenitra, north of Rabat.

"This is a historic investment marking the first gigafactory in Africa," Chaoudri told Reuters, noting that construction will start within weeks.

In addition to batteries, the plant will also produce key ingredients cathodes and anodes, with the bulk of production geared to exports, Chaoudri said.

Gotion High Tech plans to increase the plant's capacity to 100 gigawatts per hour (GWh) from a starting capacity of 20 GWh, with eventual investment that could amount to $6.5 billion, the Moroccan government said in a statement.

The investment would have a beneficial impact on the country's push to attract more manufacturers across the EV battery supply chain, as it seeks to adapt its automotive sector to electric vehicle industry requirements, he said.

--Reuters--