Chinese battery giant CATL (300750.SZ) has officially entered into a partnership with Egyptian battery manufacturer BME to establish a new production plant in Egypt, a move that underscores its continued global expansion strategy.
The agreement was formalized on September 13, witnessed by Egyptian Prime Minister Mostafa Madbouly, with the signing conducted by CATL's International Investment Management Department head Luo Haining and BME Chairman Majid Wahib. Egypt's Minister of Industry, Hashim, was also present at the ceremony.
Under the terms of the deal, the initial investment for the first phase exceeds 20 billion Egyptian pounds (approximately 260 million yuan), with an annual production capacity target of 1 GWh focused primarily on heavy-duty commercial vehicle battery systems. The second phase aims to boost total capacity to 5 GWh, expanding the product range to include passenger car batteries and energy storage systems paired with solar and wind power, while targeting a 40% local content ratio.
Prime Minister Madbouly stated at the signing that the government is committed to accelerating project implementation and moving swiftly with the next execution steps. Minister Hashim highlighted this as a pivotal moment for Egypt to build indigenous manufacturing capabilities amid the global shift toward vehicle electrification and energy storage technology.
BME, established through a joint venture between Egyptian commercial vehicle manufacturer MCV and Auto D Industrial Trade Supply Company, already possesses experience in commercial vehicle battery systems, bringing inherent automotive industry expertise to the collaboration.
Rather than establishing a wholly-owned facility, CATL's decision to partner with BME stems from a strategic focus on leveraging local enterprise resources and established market channels. This approach enables faster entry into Egypt's commercial vehicle, new energy vehicle, and energy storage markets while mitigating the market and operational risks associated with fully independent overseas factory investments.