Egypt is advancing efforts to build a strong domestic energy manufacturing base after Kemet formalised strategic partnerships with major Chinese firms in renewable energy and energy storage, signing two cooperation agreements and one memorandum of understanding.
The agreements were announced by Egypt’s Cabinet and were signed during an official visit to China by Minister of Electricity and Energy, Mahmoud Esmat, who witnessed the engagements.
Kemet’s Chairperson, Ahmed El Abd, signed a memorandum of understanding with Zhang Xin, Chairman of TBEA, a global player in power engineering and electrical equipment. The partnership focuses on cooperation in renewable energy systems, including the localisation of electrical grid-connection technologies and the establishment of Egypt’s first inverter manufacturing plant.
Separately, Kemet entered into a cooperation agreement with Chinese conglomerate GCL to develop an integrated industrial complex for the production of solar photovoltaic (PV) cells and modules. The facility, covering 280,000 square metres, will have an annual production capacity of 5 gigawatts and is expected to attract investments of about $500 million.
In another agreement, Kemet partnered with Cornex, led by Chairman Dai Deming, to establish a $200 million energy storage battery factory in Egypt. The plant will depend largely on local industrial inputs and will produce 5 gigawatt-hours of battery storage capacity annually.
As part of the visit, Minister Esmat toured the Chinese partner companies’ factories, inspecting production lines, research laboratories, and testing centres. Discussions centred on technical design, operations, and manufacturing standards to ensure that future facilities in Egypt mirror the advanced technologies and efficiencies of their Chinese counterparts.
Esmat reiterated Egypt’s goal of increasing local content in renewable energy projects to 60 percent, positioning the country as a regional hub for energy equipment manufacturing and power infrastructure development.
The agreements are part of expanding Egypt–China cooperation in the energy sector. Last week, Chinese firm Sungrow signed a deal to establish a 10-gigawatt-hour battery energy storage manufacturing plant in the Suez Canal Economic Zone. The 50,000-square-metre facility, the first of its kind in the Middle East and Africa, is expected to begin production in April 2027.