BME plans battery factory in Egypt with CATL

CATL and Egyptian battery manufacturer BME plan to establish battery production in Egypt. The plan is initially to produce an annual capacity of 1 GWh with systems for heavy commercial vehicles, with the site later expanding to 5 GWh.

Egyptian battery manufacturer BME and the world’s largest battery producer, CATL, have signed an agreement to establish a battery production facility in Egypt. BME was founded by Egyptian commercial vehicle manufacturer MCV and Auto D, an automotive spare parts company. CATL will contribute battery technology, production equipment and technical support.

In the first phase, the plant is expected to reach an annual production capacity of 1 GWh, primarily manufacturing battery systems for heavy-duty commercial vehicles. Initial investments are stated to exceed two billion Egyptian pounds, equivalent to approximately 39 million US dollars.

In a second phase, the capacity is planned to increase to 5 GWh per year. At this stage, the factory should produce batteries for passenger cars and stationary energy storage systems. The Egyptian government has not yet disclosed a timeline for the start of production or the expansion.

CATL is also leveraging its battery technology in other international projects. For example, Ford is producing LFP cells at its BlueOval Battery Park in Michigan, based on licensed CATL technology. The plant is fully owned and operated by Ford, while CATL provides the technology and services.

CATL provides technology and production equipment

The Egyptian plant aims for a local value-added share of 40 per cent. The battery systems are intended for both domestic and international markets. Among other goals, vehicle manufacturers in Egypt are to be supplied with locally produced battery systems to reduce imports and associated transport and logistics costs.

According to the project partners, BME will contribute local production and engineering capabilities, while CATL will provide battery technology, production equipment and technical support. The cooperation is also meant to promote technology transfer and a local supply chain.

In the long term, BME aims to expand beyond batteries for heavy-duty commercial vehicles and establish a broader battery industry in Egypt. This includes producing batteries for passenger cars as well as energy storage solutions for the energy sector at the site.