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RIYADH: A more than 2 billion Egyptian pound ($39 million) investment will be used to establish an electric-battery manufacturing plant in Egypt by local battery maker BME and China\u2019s Contemporary Amperex Technology Co. Ltd., as the country seeks to develop its electric-vehicle industry and expand local manufacturing.\u00a0\u00a0<\/p>\n
The plant will initially have production capacity of 1 gigawatt-hour a year, with output focused on batteries for heavy commercial vehicles, according to a government statement.\u00a0<\/p>\n
The second phase will expand production to passenger-vehicle batteries and energy-storage systems for solar and wind power, taking total capacity to 5 GWh annually and targeting a 40 percent local-content ratio.\u00a0<\/p>\n
Prime Minister Mostafa Madbouly witnessed the signing of the contract to establish the factory, which will produce various types of electric batteries, according to the government statement. The agreement was signed by Maged Wahib, chairman of BME, and Luo Haining, CATL\u2019s director of international investment. Egypt\u2019s Industry Minister Khaled Hashem attended the signing, along with BME project manager Amin Karim Ghabbour and board member Lotfy Tadros.<\/p>\n
The project comes as Egypt seeks to deepen local automotive manufacturing and establish itself as a regional production hub. The country\u2019s National Industrial Strategy 2026-2030 identifies automotive manufacturing, electrical and engineering industries and electronics among seven priority sectors, while targeting $100 billion in non-oil exports by 2030, according to the Presidency.\u00a0<\/p>\n
Egypt is also expanding renewable-energy generation and battery storage. The government aims to raise renewable sources to 45 percent of electricity generation by 2028, while battery-storage additions are planned to increase grid capacity using the technology to about 1.1 GW.\u00a0<\/p>\n
The government statement said: \u201cThe new plant aims to establish a specialized industrial base for battery systems in Egypt.\u201d Production will initially focus on heavy commercial vehicles, with the second phase covering passenger-vehicle batteries and energy-storage systems for solar and wind power.\u00a0\u00a0<\/p>\n
The project is intended to serve both local and international markets, while creating jobs and developing technical skills for Egypt\u2019s labor force. \u201cThe project aims to meet the demands of both local and global markets for electric batteries, while also creating job opportunities and enhancing the skills of technical personnel for the Egyptian labor market,\u201d the statement said.\u00a0<\/p>\n
The partnership will combine BME\u2019s Egyptian manufacturing and engineering capabilities with CATL\u2019s battery technology, production equipment and technical support. The companies aim to manufacture battery systems that meet international quality and production standards.\u00a0<\/p>\n
Locally produced batteries are expected to be supplied to vehicle manufacturers in Egypt, reducing reliance on imports as well as shipping and logistics costs. Producing batteries closer to vehicle assembly plants could also allow manufacturers to integrate the systems more closely with production lines and respond more quickly to changes in market demand.\u00a0<\/p>\n
BME was established by Egyptian commercial-vehicle manufacturer MCV and Auto D for Industry, Trade and Supplies.<\/p>\n<\/div>\n