# CATL backs Egypt battery plant under EGP 2bn licensing deal *A local joint venture will invest $39 million to assemble CATL packs for commercial vehicles and energy storage, targeting exports across the Middle East and Europe.* **Published:** October 20, 2026 **By:** Lian Chen **Section:** Batteries & Electric Vehicles — China **Format:** Company Watch **Confidence:** medium **Source:** https://eastasiabrief.com/batteries-ev/catl-backs-egypt-battery-plant-under-egp-2bn-licensing-817 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - CATL licenses pack tech to BME under EGP 2bn ($39m) Phase 1 capex - MCV-backed plant targets 1 GWh initial capacity, expanding to 5 GWh - Partner Auto D targets commercial pack assembly operations in 2027 ![Workers in protective hard hats monitor robotic arms along an automated battery assembly line inside a manufacturing plant. (AI-generated image)](https://eastasiabrief.com/media/2026-10-19-90cb1a262855.webp) *Workers in protective hard hats monitor robotic arms along an automated battery assembly line inside a manufacturing plant. (AI-generated image)* Baker McKenzie said Oct. 19, 2026, it finalized the legal framework for CATL to establish a battery systems plant in Egypt with local partner Battery Manufacturing Egypt. Contemporary Amperex Technology Co. Limited is the world's largest traction battery manufacturer by volume. The Chinese company is expanding its technology licensing footprint across North Africa to access Mediterranean markets. Battery Manufacturing Egypt will invest over 2 billion Egyptian pounds ($39 million) to construct the plant's first phase. The initial stage provides 1 GWh of annual battery pack assembly capacity. The project plans to expand to 5 GWh of annual capacity in its second phase. That planned expansion will add passenger vehicle batteries and grid-scale energy storage systems. Battery Manufacturing Egypt is a joint venture between commercial vehicle producer Manufacturing Commercial Vehicles and automotive supplier Auto D. Both partners operate automotive manufacturing operations in Egypt. Battery Manufacturing Egypt assumes all factory construction costs and project capital expenditures. CATL provides lithium battery cells, proprietary pack assembly intellectual property, specialized manufacturing equipment and technician training. Manufacturing Commercial Vehicles currently produces zero-emission electric buses for commercial export to the United Kingdom and Germany. The planned facility will supply assembled battery modules directly to those bus assembly lines. The venture targets a 40% domestic parts localization threshold for completed battery systems. Achieving that content level qualifies finished commercial vehicles for duty-free access under regional trade treaties. Ghada El Ehwany, managing partner of Baker McKenzie Cairo, said the project advances Egypt's industrial clean technology capabilities. The investment positions the country as a regional manufacturing hub, she said. Zeinab Shohdy, mergers and acquisitions counsel at Baker McKenzie Cairo, said the legal framework rigorously protects CATL's proprietary technology assets while deploying its industrial innovation in Egypt. The Egyptian partnership provides Chinese battery manufacturers with an export channel into Western markets. The European Union applies countervailing tariffs of up to 35.3% on direct Chinese electric vehicle imports. Egypt maintains bilateral free trade agreements with the European Union and members of the Agadir Agreement. Goods meeting regional value-added criteria enter the European market without punitive import duties. The country is also a member of the Common Market for Eastern and Southern Africa trade bloc. That treaty provides tariff exemptions across 21 member nations for qualifying industrial goods. Assembling modules in North Africa enables Chinese battery technologies to enter European and African supply chains locally. This geographic position avoids trade duties levied on finished battery packs exported directly from China. Middle Eastern demand for utility-scale energy storage systems is accelerating alongside large renewable installations. Gulf utilities require localized pack integration to backstop gigawatt-scale solar and wind developments. Regional infrastructure developers increasingly seek nearshore pack assembly to reduce maritime shipping expenses. Sourcing packs inside the Red Sea transit zone also mitigates recurring commercial shipping disruptions. The Cairo licensing structure follows CATL's asset-light global commercial expansion strategy. Ford Motor uses a similar technology licensing structure for its lithium iron phosphate battery plant in Michigan. Licensing intellectual property allows CATL to collect steady cell export orders and recurring royalties. The arrangement simultaneously shifts project financing obligations and physical asset exposure to the local partner. Egyptian Prime Minister Mostafa Madbouly and Minister of Industry Khaled Hashem attended the project's foundational signing on Sept. 13, 2026. The ceremony confirmed Egyptian state support for the facility. Luo Haining, head of overseas investment at CATL, signed the preliminary cooperation pact with BME Chairman Maged Wahib. The partners concluded the commercial agreement in Cairo. Baker McKenzie Cairo said its transactional team structured long-term technology licensing pacts. The legal work established intellectual property safeguards and defined cross-border regulatory compliance protocols. The factory will produce high-voltage battery packs designed specifically for heavy trucks and mass transit buses. Phase 1 output directly addresses commercial transport decarbonization targets set by the Egyptian government. Local partner Auto D said the joint venture plans to begin commercial battery pack assembly during 2027 under the project timetable. Official announcements from the Egyptian Cabinet and CATL do not disclose the factory's exact geographic location or its target groundbreaking date. Egypt currently relies on imported battery cells and pack modules for domestic electric transit fleets and grid-scale renewable energy storage installations. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | CATL Egypt pack licensing | no direct exposure, domestic cell makers face competition in European electric bus supply | CATL secures cell export volume and licensing royalties without capital risk | no direct exposure, trading houses monitor North African renewable storage demand | Nearshore North African pack assembly cuts Middle East logistics costs and bypasses EU tariffs | ## In this story - **Companies:** Contemporary Amperex Technology Co. Limited - **Tickers:** 300750.SZ - **Exposed:** Manufacturing Commercial Vehicles - **Impact:** Supply Chain, Capex ## Primary sources 1. vaquill.com 2. legaldesire.com 3. equalocean.com 4. arabnews.com 5. sis.gov.eg --- Cite as: East Asia Brief, "CATL backs Egypt battery plant under EGP 2bn licensing deal," October 20, 2026. https://eastasiabrief.com/batteries-ev/catl-backs-egypt-battery-plant-under-egp-2bn-licensing-817