Egypt has begun construction of a major battery energy-storage systems manufacturing plant that is expected to become the first dedicated facility of its kind in the Middle East and Africa.
The Sungrow Power Suez plant is being developed within the Egypt-China TEDA Economic and Trade Cooperation Zone in Ain Sokhna, as Egypt seeks to localize advanced clean-energy technologies and strengthen its manufacturing capacity.
Egyptian Minister of Industry Khaled Hashem participated in the foundation stone ceremony and said the project would support the country’s transition to cleaner energy while strengthening its industrial partnership with China.
Storage to support renewable energy expansion
The facility will manufacture advanced battery energy-storage systems (BESS), which are designed to help manage electricity supply and demand and improve the stability of power grids with increasing levels of variable renewable generation.
Mr Hashem said the project would strengthen Egypt’s ability to accommodate a growing share of renewable energy while improving the stability of the national electricity grid.
Beyond manufacturing, he said the investment would contribute to technology transfer, skills development and the growth of local feeder industrie.
The Minister called on Sungrow to increase the proportion of locally produced components used at the facility and deepen cooperation with Egyptian institutions and research centres.
- Egypt pushes clean-energy manufacturing
The plant is being established in the TEDA zone, which the Egyptian government is developing as a major industrial and investment hub.
Mr Hashem said the project reinforces the zone’s role in attracting advanced technologies and developing higher-value industries linked to renewable energy.
He said Egypt’s updated industrial strategy identifies equipment and components for solar and other renewable-energy technologies as strategic enabling industries.
The strategy is aimed at strengthening domestic manufacturing, attracting investment in advanced technologies and integrating Egyptian companies more deeply into global supply chains.
Operations expected next year
The Industry Minister said the project reflects Egypt’s broader push to localize advanced technologies and build domestic production capacity in clean-energy industries.
Construction and equipment installation are expected to proceed according to the agreed schedule, with commercial operations targeted to begin next year.
The project is expected to strengthen Egypt’s emerging energy-storage manufacturing base while supporting the country’s wider efforts to expand renewable energy and build domestic capabilities across the clean-energy value chain.