CATL is involved in a battery factory in Egypt

CATL and the Egyptian battery manufacturer BME aim to establish a battery production facility in Egypt. Initially, systems for heavy commercial vehicles with an annual capacity of 1 GWh are planned, with the facility expected to expand to 5 GWh later on.

The Egyptian battery manufacturer BME and CATL have signed a contract to build a battery production plant in Egypt. BME was founded by the Egyptian commercial vehicle manufacturer MCV and Auto D for Industry, Trade and Supplies. CATL will provide battery technology, production equipment, and technical support.

In the first phase of expansion, the facility is set to achieve an annual production capacity of 1 GWh, focusing on manufacturing battery systems for heavy commercial vehicles. Initial investments are estimated at over two billion Egyptian pounds, equivalent to around 39 million US dollars.

In a second phase, the capacity is planned to increase to 5 GWh per year. At that point, production of batteries for passenger cars as well as stationary storage systems for solar and wind energy is also intended. The Egyptian government has not yet provided a timeline for the start of production and further expansion.

CATL also relies on sharing its battery technology for other international projects. For example, Ford produces LFP cells at its BlueOval Battery Park Michigan using licensed CATL technology. The facility is entirely owned by Ford and operated by the U.S. manufacturer, while CATL provides the technology and services.

CATL Supplies Technology and Production Facilities

A local content ratio of 40 percent is targeted for the Egyptian plant. The battery systems are intended to be sold in both domestic and international markets. Vehicle manufacturers in Egypt are expected to receive battery systems produced locally, thereby reducing imports and associated transportation and logistics costs.

BME brings in the local production and engineering capabilities, according to the project partners, while CATL contributes battery technology, production equipment, and technical support. The partnership is also intended to facilitate technology transfer and the development of a local supply chain.

In the long term, BME aims to build a broader battery industry in Egypt beyond batteries for heavy commercial vehicles. Therefore, in addition to car batteries, storage solutions for the energy sector are also planned to be produced at this site.