Egypt and CATL partner to build electric battery factory

Egypt has signed a contract to establish an electric battery manufacturing plant through a partnership between the Egyptian company BME Battery Manufacturing and China’s Contemporary Amperex Technology Co. Limited (CATL), the world’s largest electric battery manufacturer. The agreement was witnessed by Egyptian Prime Minister Mostafa Madbouly.

The project will be implemented in two phases. The first phase involves an initial investment exceeding 2 billion Egyptian pounds, aiming for an annual production capacity of 1 gigawatt-hour (GWh) focusing on batteries for heavy commercial vehicles. The second phase aims to expand capacity to 5 GWh per year, including batteries for passenger cars and energy storage solutions for solar and wind power.

The facility targets a local component rate of 40% and seeks to serve both domestic and international markets. By combining Egyptian engineering expertise with advanced Chinese technology, the project aims to reduce reliance on imports, lower logistics costs for local vehicle manufacturers, and create new technical job opportunities in Egypt.