Arab Finance: BME Battery Manufacturing, an Egyptian company established by Manufacturing Commercial Vehicles (MCV) and Auto D, and China’s Contemporary Amperex Technology Company Limited (CATL) signed an agreement to set up a factory for manufacturing various types of electric batteries in Egypt, according to a statement.
The project aims to build a specialized industrial base for battery system manufacturing in Egypt, focusing on batteries for heavy commercial vehicles before expanding into passenger car batteries and energy storage solutions.
The factory’s first phase will have an annual production capacity of 1 gigawatt-hour (GWh), with initial investments exceeding EGP 2 billion. The annual capacity is planned to rise to 5 GWh under the second phase, which will include batteries for passenger vehicles and energy storage systems for solar and wind power.
The facility targets a local content rate of 40% and is expected to serve both local and international markets, creating new manufacturing and export opportunities while reducing Egypt’s reliance on imported battery systems.
The locally produced batteries will supply vehicle manufacturers in Egypt, reducing shipping and logistics costs and enabling closer integration with vehicle production lines. The facility is also expected to provide greater flexibility and faster response times in supporting electric vehicle (EV) programs.
Prime Minister Mostafa Madbouly called for the swift implementation of the project and its subsequent phases to support the localization of the battery industry and strengthen Egypt’s manufacturing capabilities.
For his part, Industry Minister Khaled Hashem said the project marks an important step toward developing Egypt’s domestic battery manufacturing capacity and supporting the country’s transition toward EVs and energy storage solutions.
Hashem added that Egypt’s strategic location, along with its manufacturing and engineering capabilities, could help strengthen the country’s position in the battery industry regionally and internationally.
