Egypt Signs Electric Battery Factory Deal with China's CATL Worth Over EGP 2 Billion

Egypt has signed a contract to build an electric vehicle battery factory with initial investments exceeding EGP 2 billion and a first-phase capacity of 1 GWh per year. The agreement was signed between BME Battery Manufacturing and China's Contemporary Amperex Technology Limited (CATL), the world's largest electric vehicle battery maker, in the presence of Prime Minister Mostafa Madbouly.

Contract Details and Signatories

Magd Wahib, chairman of BME, and Luo Haining, director of international investment at CATL, signed the deal. Industry Minister Khaled Hashem, project director Amin Karim Ghobour. BME board member Lotfy Tadros attended the ceremony. The move places Egypt on the map for electric vehicle component manufacturing in the region.

Two-Phase Production Plan

The factory will begin production with heavy commercial vehicle batteries. Phase two aims to raise capacity to 5 GWh annually, adding passenger car batteries alongside solar and wind energy storage solutions. The targeted local content ratio is 40%.

Madbouly expressed satisfaction with the CATL deal, noting the company's extensive expertise and capabilities in battery manufacturing. He stressed that the government expects implementation to begin swiftly and looks forward to the next executive steps as soon as possible.

The project aims to build a specialized industrial base for battery systems manufacturing in Egypt. This push supports the electric vehicle sector and boosts local manufacturing of modern vehicle components. Will this project reshape EV pricing in Egypt?