CATL（宁德时代）and Egyptian battery manufacturer BME signed a contract on September 13 to establish a battery manufacturing plant in Egypt, with initial investment exceeding EGP 2 billion and planned annual capacity of 1 GWh. The project will initially produce battery systems for heavy commercial vehicles, creating a local manufacturing base intended to serve Egyptian and export markets.
Egyptian Prime Minister Mostafa Madbouly witnessed the signing, which brought together BME chairman Maged Wahib and CATL international investment director Luo Haining. Industry Minister Khaled Hashem also attended, according to local reporting citing an Egyptian cabinet statement.
A planned second phase would raise annual capacity to 5 GWh and broaden production to passenger-vehicle batteries and storage systems for solar and wind energy. The project targets 40% local content. These figures describe the intended expansion, while construction and production milestones remain to be established.
BME was founded by Egyptian commercial-vehicle manufacturer MCV and Auto D for Industry, Trade and Supplies. That connection gives the project an industrial base linked to vehicle manufacturing and engineering. The partnership aims to combine CATL’s battery expertise with Egyptian capabilities to develop local suppliers, technical skills and production capacity.
The agreement fits Egypt’s efforts to deepen automotive manufacturing. Its Automotive Industry Development Program emphasizes higher local content, greater domestic value added and stronger export competitiveness. Battery-system production could extend that effort into a significant vehicle component, alongside the assembly of finished vehicles.
For CATL, the project offers a potential route to support customers through manufacturing closer to their operations. Working with a local industrial partner could help align battery-system engineering, delivery and after-sales support with regional requirements. The disclosed information does not establish the plant’s ownership structure or how investment will be divided between the companies.
The commercial logic starts with the project’s initial focus. Heavy commercial vehicles provide a defined application around which production can be organized, while passenger vehicles and stationary storage offer possible expansion markets. Progress toward 5 GWh will depend on securing customers and building the supply chain needed to support that broader product range.
For Chinese battery technology going overseas, the agreement illustrates a route through local industrial partnerships. For Egypt, the value will depend on which manufacturing processes, components and engineering capabilities take root locally. The 40% local-content target provides a concrete measure of that ambition; sustained orders and supplier development will determine how much of it becomes an enduring industrial capability.
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