CAIRO, Sept 14 – Egypt is set to strengthen its position in electric mobility and energy storage after BME Battery Manufacturing Company signed an agreement with China’s Contemporary Amperex Technology Co. Limited (CATL) to establish a battery manufacturing facility in the country.
The project will begin with an investment of more than EGP 2 billion and an initial production capacity of 1 gigawatt-hour (GWh) annually, according to a statement from the Egyptian Cabinet.
The first phase will focus on battery systems for heavy commercial vehicles, while a second phase is expected to raise annual capacity to 5 GWh and broaden production to passenger vehicle batteries and energy storage systems for solar and wind power projects.
The facility is targeting a local content ratio of up to 40% and is expected to serve both Egypt’s domestic market and export markets. The government said the project will also support employment, technology transfer, local supply-chain development and the expansion of technical expertise within Egypt’s manufacturing workforce.
Prime Minister Mostafa Madbouly said the government wants to accelerate implementation of the project, describing the investment as an important step toward localizing battery production and expanding Egypt’s industrial capabilities in the sector.
Industry Minister Khaled Hashem said the partnership could help Egypt build capabilities in a market benefiting from rising global demand for electric vehicles and energy storage technologies.
Egypt’s geographic position, manufacturing base and engineering capabilities could also strengthen its potential as a regional battery production and export centre, Hashem said. He identified automotive components as a key pillar of the country’s automotive industry strategy and an important element in efforts to attract international vehicle manufacturers.
Project Director Amin Karim Ghabbour said the partnership would combine CATL’s battery technology with Egypt’s domestic manufacturing and engineering capabilities.
The cooperation is expected to facilitate knowledge and technology transfer, establish a local supply chain and create a scalable manufacturing platform capable of competing in international markets.
BME’s longer-term strategy extends beyond batteries for heavy commercial vehicles. The company plans to develop an integrated battery systems industry covering passenger vehicles and renewable energy storage, potentially creating additional opportunities for manufacturing, investment and exports.
The joint venture brings together MCV, an Egyptian manufacturer of buses and trucks, Auto D for Industry, Trade and Supplies, a publicly traded automotive-sector company, and CATL. The project’s location and implementation timeline have not yet been disclosed.
Strengthening Egypt-China Industrial Ties
The battery project comes as Egypt and China deepen their industrial and trade relationship, with Chinese companies playing an expanding role across manufacturing, energy, transport and infrastructure in Egypt.
Egyptian exports to China increased by roughly 200% year-on-year to $840.8 million in the first six months of 2026, compared with $280.5 million during the same period in 2025.
The two countries have also been expanding cooperation in industrial manufacturing, technology and supply chains, including through the China-Egypt TEDA Suez Economic and Trade Cooperation Zone.
For Egypt, greater domestic battery production could support broader efforts to develop higher-value manufacturing and reduce dependence on imported components as the country seeks to expand its industrial export base.
The investment also comes as Egypt works to transform its automotive sector from an assembly-focused industry into a more integrated manufacturing ecosystem.
The government’s National Automotive Industry Development Programme (AIDP), launched in October 2025, aims to increase domestic vehicle production, attract international automakers, expand local component manufacturing and reduce reliance on imported vehicles and parts.
The programme targets 60% local value-added content, more than 35% domestic industrial component content and annual vehicle production of 100,000 units.
The development of battery manufacturing and automotive feeder industries could therefore become an important component of Egypt’s broader industrial strategy, particularly as the country seeks to expand non-oil manufactured exports and build greater resilience against external supply shocks.
