Chinese investors to build solar, battery cell factories in Egypt
Chinese companies are set to invest hundreds of millions of dollars in Egypt to localise the manufacturing of key renewable energy equipment, including power inverters, solar cells, and battery storage systems, as the country seeks to deepen its clean energy supply chain.
During an official visit to China, Egypt’s Minister of Electricity and Renewable Energy, Mahmoud Esmat, witnessed the signing of several cooperation agreements between Egyptian firm Kemet and Chinese manufacturers.
One strategic cooperation agreement, signed with China’s Cornex, envisages building a factory for battery cells with an annual capacity of 5,000 MWh. The facility will rely on local raw materials and components, with total investments estimated at USD 200 million (EUR 170.58m). The facility is designed to support grid stability and the integration of solar and wind power.
A separate deal with China’s Suzhou Weicheng, part of the GCL Group, includes plans to build an integrated industrial complex for solar cell and photovoltaic module production with an annual capacity of 5 GW. The project will be located on an area of about 280,000 square metres and involves total investments of USD 500 million, according to Egypt’s electricity ministry. The agreement includes technology transfer, the use of locally sourced inputs and workforce development.
In addition, Kemet signed a deal with China’s TBEA for the construction of Egypt’s first factory for manufacturing power inverters used to connect renewable energy projects to the national grid. The partnership also covers cooperation on electrical equipment, grid integration systems and training programmes.
Esmat said the agreements reflect Egypt’s strategy to transfer advanced technologies, increase local value added and position the country as a regional hub for renewable energy equipment manufacturing. He added that the government is providing full support to private sector partnerships that help localise industry, reduce carbon emissions and strengthen the electricity network as renewable energy’s share in the power mix continues to rise.