In 2024, China endorsed a deal worth US$5.6 billion to establish the Gotion High-Tech gigafactory in Morocco, potentially brewing at a flashpoint in a broader narrative. But why is this colossal Chinese investment making headlines now? The reason is salient; it is no longer a blueprint, and the groundwork is complete, and the land is all set for construction. This reality has cast a blinding light on the kingdom’s complex path towards economic modernisation.
In June 2024, the deal was finalised through a key strategic investment, along with the follow-up memorandum in November that year. It is a milestone for Morocco as well as for the African continent. The project is strategically positioned in Kenitra in northwestern Morocco, providing China a gateway to enter the European market and bypassing the potential trade barriers as well.
“Africa’s first” gigafactory is designed to produce batteries for electric vehicles, initially with an annual capacity of 20 gigawatt-hours and expanding it with an ambition of reaching up to 100 GWh. The project represented a shift in diversifying Morocco's economic infrastructure from traditional sectors, such as tourism, agriculture, and textiles, to a more modernised approach, marking a leap into the global energy race.
All the headlines point towards progress and prosperity. However, one of the facets of the gigafactory project is the challenge of water usage, which can significantly undermine Morocco’s ambitions.
The plant will be built in the Sebou River basin. This region hosts over six lakh people, which is approximately 23 per cent of the total Moroccan population and is one of the densely populated regions. The Sebou River is a lifeline, and the basin is a heartland for agriculture, including the fertile Gharb Plain, a key source of food security in Morocco. Due to climate change, the river basin has been a frequent hotbed of droughts.
Although no specific organised protests by local communities or tribes against the Gotion project have occurred, that does not signal public contentment. Rather, it reflects simmering national resentment over water scarcity and the government’s broader water management policies. At present, water is a highly political and pressing issue in Morocco. Communities in rural areas that are deeply tied to agriculture and have a history of protesting against the government are leveraging the large-scale industrial projects and water-intensive export crops over their basic needs. A live example of a country’s policy favouring large corporations is the establishment of a water-intensive gigafactory amidst an alarming national water crisis.
Morocco avoided the practice of providing land and infrastructure as a part of its foreign investment and followed a careful developmental plan by providing only the government land, which already existed under the ambit of the industrial zone. This approach carefully avoids all the delicate and problematic issues of residential displacement, which could backfire and spur public backlash. The gigafactory plan, however, does not address deeper concerns about the true benefit and beneficiary. The major concern is that the potential of the gigafactory to spark the existing social inequalities.
The project promises to immediately create 2,300 jobs and gradually expand the workforce to 10,000. The project seeks to require high-skilled workers, but what about the locals who lack specialised skills? In addition, the project could also lead to a surge in the cost of living, maybe pricing out long-time Kenitra residents.
Finally, while the gigafactory is a step towards a cleaner, greener future, it comes along with adverse environmental impacts. The abundant amount of water required for battery production will significantly strain the already stressed Sebou River basin. The risk of pollution from industrial waste and chemicals in the manufacturing process will further require diligent and rigorous monitoring to prevent any harm to the local environment and population.
The Gotion gigafactory project symbolises Morocco’s bid to become a regional leader in high-tech manufacturing. At the same time, it also serves as a stark reminder of the social and environmental trade-offs that accompany rapid industrialisation. The fate and success of this project will not be measured in dollars or job creation, but in how the Moroccan government navigates and manages the deep-seated resentment of its people regarding the most precious resource: water.
The author is a doctoral candidate at the Centre for West Asian Studies, Jawaharlal Nehru University, New Delhi.