- CATL and Egypt’s BME signed for a staged local battery plant to localize supply, relieve import reliance, and support NEV and renewable energy ambitions in Egypt.
- The first phase targets 1GWh annual capacity for heavy commercial vehicle power batteries, expanding to 5GWh total with 40% local content and EGP 2 billion (about $39M) investment.
- The plant targets Egyptian automakers and export markets, but faces risks around ramp timing, achieving local content, scaling passenger-vehicle battery output, and supply chain coordination.
Chinese battery giant CATL and Egyptian battery company BME have signed a cooperation agreement to develop an electric vehicle battery manufacturing plant in Egypt.
The project represents a total investment of more than EGP 2 billion ($39M) and will be used to establish a local battery production base. The Egyptian government said the facility will become a key part of the country’s battery industry, supporting the growth of its NEV sector and expanding local manufacturing capabilities.
The plant will be developed in two phases.
The first phase will target an annual production capacity of 1GWh, focusing mainly on power batteries for heavy commercial vehicles.
The second phase will further expand capacity to cover passenger-vehicle batteries as well as energy storage systems for solar and wind power. Total capacity is expected to reach 5GWh, with a local content rate of 40%.
Batteries produced at the facility will primarily supply Egyptian automakers while also serving international markets.
As Egypt pushes forward with automotive localization, local battery production could help automakers reduce reliance on imports, lower transportation and logistics costs, and improve coordination between battery supply chains and vehicle manufacturing.
The partnership combines the strengths of both companies.
BME was jointly established by Egyptian commercial vehicle maker MCV and Auto D for Industry, Trade and Supplies, giving it local automotive manufacturing and engineering capabilities. CATL will provide battery technology, production equipment, and technical support.
For Egypt, developing local battery manufacturing capacity marks a major step in upgrading its NEV industry.
In recent years, Egypt has accelerated efforts to expand its domestic automotive sector, seeking to attract international investment and gradually establish a complete supply chain covering vehicle production and key components.
Under Egypt’s National Industrial Strategy 2026-2030, automotive manufacturing, electrical engineering, and electronics have been identified as priority sectors. The country also targets $100B in non-oil exports by 2030.
Meanwhile, rising renewable energy deployment is driving greater demand for energy storage systems. Egypt plans to increase the share of renewable power generation to 45% by 2028 while expanding grid-scale energy storage applications.
For CATL, the Egypt project represents another step in expanding its global manufacturing footprint.
CATL established its German subsidiary CATG in 2014, marking the beginning of its overseas expansion. In 2018, the company started construction of its first overseas battery manufacturing base in Thuringia, Germany, becoming the first Chinese battery maker to localize production in Europe.
CATL later began developing its second major European battery plant in Hungary, with a total investment of €7.34B. The facility is among the company’s largest battery projects in Europe.
The company is also developing a joint battery plant with Stellantis in Spain, with planned annual capacity of 50GWh. Its Indonesia battery supply-chain project is also underway, covering nickel resources, battery materials, battery manufacturing, and recycling.
The move into Egypt further extends CATL’s global battery manufacturing network into the Middle East and Africa.
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