Egypt signs deal with China’s CATL to build EV battery plant

Egypt has signed a contract with Chinese battery maker Contemporary Amperex Technology (CATL) to establish a battery plant with an initial investment of more than 2 billion Egyptian pounds ($39 million), the Cabinet said on Sunday.

Prime Minister Moustafa Madbouly witnessed the signing between Egypt’s BME Battery Manufacturing (BME) and CATL, which the Cabinet described as the world’s largest electric-battery manufacturer.

The plant will initially produce battery systems for heavy commercial vehicles, with an annual capacity of 1 gigawatt-hour in its first phase, the Cabinet said.

Capacity is planned to rise to 5 gigawatt-hours annually in a second phase, when production will expand to batteries for passenger cars and energy-storage systems for solar and wind power.

The project targets a local component ratio of 40 per cent and will supply both domestic and international markets, while creating jobs and developing technical skills in Egypt, according to the cabinet.

The partnership will combine Egyptian manufacturing and engineering capabilities with CATL’s battery technology, production equipment and technical support, the government said.

Locally produced battery systems will help vehicle manufacturers reduce reliance on imports and related shipping and logistics costs, while allowing batteries to be supplied closer to vehicle production lines, it added.

Industry Minister Khaled Hashem said the project would help develop Egypt’s domestic battery manufacturing capacity as the global automotive industry shifts towards electric vehicles and energy-storage solutions.

Automotive component industries are a cornerstone of Egypt’s programme to develop its automotive sector and attract global carmakers, Hashem said.

Amin Karim Ghabbour, the project’s manager, said the partnership would support technology and knowledge transfer, develop a local supply chain, and create a scalable industrial base.

BME initially plans to focus on batteries for heavy commercial vehicles but aims to expand into passenger-car batteries and energy-storage solutions, Ghabbour said.