Egypt has laid the foundation stone for a $50 million plant to assemble energy storage systems led by Sungrow Power Suez for Energy Equipment Manufacturing LLC, a subsidiary of Chinese renewable energy company Sungrow, according to a Cabinet statement.

The plant spans an area of 50,000 square meters (m²) and is located in the Tianjin Economic-Technological Development Area (TEDA) zone in the El-Sokhna industrial area, part of the Suez Canal Economic Zone (SCZONE).

The project, signed in January, is expected to have an annual production capacity of 10 gigawatt-hour (GWh) at full operation, with production scheduled to commence in April 2027. It is expected to create more than 100 jobs, with a focus on employing local workers in manufacturing, production, and technical roles.

Thomson Meng, Vice President of Sungrow, said the groundbreaking marks the beginning of an integrated clean energy platform combining advanced technology with industrial capabilities, while strengthening Egypt-China cooperation and supporting expansion into Middle Eastern and African markets.

During the ceremony, Mahmoud Esmat, Minister of Electricity and Renewable Energy noted that the plant will contribute to developing an integrated manufacturing ecosystem for renewable energy components in Egypt and support the country’s ambition to become a regional hub for renewable energy equipment manufacturing and exports.

According to Esmat, these efforts are supported by infrastructure development and investment-friendly regulations, as well as plans to increase the share of renewable energy in Egypt’s energy mix by 45% in 2030 and reduce reliance on conventional fuels.

For his part, Khaled Hashem, Minister of Industry, described the project as the first specialized energy storage systems manufacturing facility in the Middle East and Africa (MENA). It will support the transition to clean energy, improve the stability of the national electricity grid, and help integrate growing shares of renewable energy through advanced storage solutions.

The Sungrow project will also support renewable energy developments in Egypt, including Scatec’s Energy Valley project in Minya.

Sungrow is a global leader in inverter and energy storage solutions for the renewable energy industry, with a presence in over 150 countries. In Egypt, the company is transitioning from a technology supplier to a primary manufacturer through the establishment of a 10-gigawatt-hour (GWh) battery energy storage system (BESS) factory in TEDA.