According to a Cabinet statement issued on Sunday, the new facility aims to establish a specialized industrial base for battery systems manufacturing in Egypt.
BME Battery Manufacturing Company and China’s Contemporary Amperex Technology Co. Limited (CATL) have signed an agreement to establish a factory in Egypt for the production of various types of electric batteries, with initial investments exceeding EGP 2 billion in the first phase.
According to a Cabinet statement issued on Sunday, the new facility aims to establish a specialized industrial base for battery systems manufacturing in Egypt. Production will initially focus on batteries for heavy commercial vehicles, with plans to expand into passenger vehicle batteries and energy storage solutions, addressing growing demand across the transportation and energy sectors while creating new opportunities for manufacturing and exports.
The plant will have an annual production capacity of 1 GWh during the first phase, backed by initial investments of more than EGP 2 billion. Capacity is expected to increase to 5 GWh annually in the second phase.
The second phase will also include the production of passenger vehicle batteries and clean-energy storage batteries for solar and wind power applications. The project targets a local content ratio of up to 40%.
The project is designed to meet demand for electric batteries in both domestic and international markets, while creating employment opportunities and enhancing the skills and capabilities of Egypt’s technical workforce.
Prime Minister Mostafa Madbouly said the government is counting on the swift implementation of the project and looks forward to advancing the next steps as quickly as possible. He noted that the project would support Egypt’s efforts to localize battery manufacturing and strengthen the country’s production capabilities in the sector.
Minister of Industry Khaled Hashem said the factory represents an important step toward establishing new Egyptian industrial capabilities in battery manufacturing, enabling the country to keep pace with the accelerating global transition toward electric vehicles and energy storage solutions.
He added that Egypt could leverage its strategic location, as well as its manufacturing and engineering capabilities, to strengthen its position in the battery industry at both the regional and international levels.
Hashem also emphasized that automotive component industries are a cornerstone of the success of Egypt’s national automotive industry development program and a key catalyst for attracting global vehicle manufacturers.
Project Director Amin Karim Ghabbour said the partnership with CATL is a key component in building this industrial capability by combining advanced global expertise in battery technology with Egypt’s manufacturing and engineering capabilities.
According to Ghabbour, the partnership will support knowledge and technology transfer, help develop a local supply chain, and establish a scalable and competitive industrial base.
He added that BME’s ambitions extend beyond producing battery systems for heavy commercial vehicles. The company aims to lay the foundation for an integrated battery systems industry that will eventually encompass passenger vehicle batteries and energy storage solutions.
The expansion is expected to create new opportunities for investment, manufacturing and exports, while supporting Egypt’s ambition to become a regional hub for future-oriented industries.
