On September 13, 2026, Egypt’s battery manufacturer BME signed an agreement with CATL to jointly establish a battery production plant in Egypt.
The new factory aims to create an industrial base in Egypt dedicated to the production of battery systems, initially focusing on batteries for heavy commercial vehicles, with plans to expand into passenger vehicle batteries and energy storage solutions.
In the first phase, the plant is expected to have an annual production capacity of 1GWh, primarily producing battery systems for heavy commercial vehicles. The initial investment is reported to exceed 2 billion Egyptian pounds, equivalent to approximately $39 million US.
The second phase plans to increase capacity to 5GWh per year. At that point, the plant will produce batteries for passenger vehicles and stationary energy storage systems.
The collaboration combines Egypt’s manufacturing and engineering capabilities with CATL’s battery technology, production equipment and technical support. The plant will supply locally produced battery systems to Egyptian automakers, thereby reducing dependence on imports and associated transportation and logistics costs.
It is understood that CATL is also applying its battery technology in other international projects. Ford Motor Company, for example, produces LFP batteries at its BlueOval Battery Park in Michigan using technology licensed by CATL. The plant is wholly owned and operated by Ford, while CATL provides technology and services.
In the long term, BME aims to expand beyond heavy commercial vehicle batteries to build a broader battery industry in Egypt. This includes producing passenger vehicle batteries at the site and providing energy storage solutions for the energy sector.
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