Egyptian Prime Minister Mostafa Madbouly witnessed the signing of a contract to establish an electric battery manufacturing plant in Egypt through a partnership between Egyptian battery manufacturer BME and China’s Contemporary Amperex Technology Co. Limited (CATL), one of the world’s largest electric battery manufacturers.
The agreement was signed by Maged Wahib, chairman of BME, and Luo Haining, director of international investment at CATL, in the presence of Industry Minister Khaled Hashem, project manager Amin Karim Ghobour, and BME board member Lotfy Tadros.
The factory will be established as an industrial base for manufacturing battery systems in Egypt, initially focusing on batteries for heavy commercial vehicles. The first phase will have an annual production capacity of 1 gigawatt-hour (GWh), with initial investments exceeding EGP 2bn.
Under the project’s second phase, production capacity is planned to increase to 5 GWh annually. The expansion is expected to include batteries for passenger vehicles and energy-storage systems for renewable energy generated from solar and wind power.
The project targets a local content ratio of 40% and is intended to supply both the Egyptian and international markets, while supporting the development of local manufacturing capabilities and technical skills.
BME was established by Egyptian transport manufacturer MCV and Auto D for Industry, Trade and Supplies. Through its partnership with CATL, the company plans to manufacture battery systems locally for vehicle manufacturers operating in Egypt.
Local production is expected to reduce reliance on imported battery systems and lower some of the shipping and logistics costs associated with imports, while allowing battery systems to be supplied closer to vehicle production lines.
Madbouly said the government is looking to accelerate implementation of the project and move quickly towards the next executive steps, describing the agreement as part of efforts to support and localise battery manufacturing in Egypt.
The prime minister also highlighted CATL’s experience and capabilities in battery manufacturing, saying the government expects the project to contribute to developing Egypt’s industrial capacity in the sector.
Industry Minister Khaled Hashem said that the factory represents a step towards establishing new domestic manufacturing capabilities in battery production as the global automotive industry shifts towards electric vehicles and energy-storage technologies.
He added that automotive component industries are a key element of Egypt’s national automotive industry development programme and can help attract global vehicle manufacturers to the country.
Amin Karim Ghobour, the project manager, said the agreement follows the government’s efforts to deepen local manufacturing and localise modern technologies, particularly in automotive components, electric vehicles, and battery systems.
He said the partnership would combine CATL’s battery technology, production equipment, and technical support with Egyptian manufacturing and engineering capabilities. The cooperation is also expected to support technology transfer and the development of a local supply chain for battery manufacturing.
Ghobour added that BME’s plans extend beyond the initial production of battery systems for heavy commercial vehicles. The company aims to establish a broader battery manufacturing platform that could eventually cover passenger vehicle batteries and energy-storage solutions.
The project is expected to serve growing demand for battery systems in Egypt’s transport and energy sectors while creating new manufacturing and investment opportunities and supporting the development of technical skills required for the electric mobility industry.
