CATL signs deal to license battery pack technology to Egypt's BME

CATL and BME sign pack-assembly deal

Egypt's prime minister, Mostafa Madbouly, attended the contract signing, where BME chairman Maged Wahib and CATL international investment director Luo Haining signed the agreement, Zawya reported. Industry minister Khaled Hashem, project manager Amin Karim Ghobour and BME board member Lotfy Tadros were also present. The agreement was signed on 13 September, according to ad-hoc-news.de, and CATL announced the cooperation publicly on 16 September.

BME will fund and build the plant itself, CnEVPost reported.

BME plans the first phase at 1 GWh of annual capacity, aimed primarily at batteries for heavy commercial vehicles, according to Zawya. CATL's announcement did not disclose an investment amount or a production timeline. Arab Finance reported initial investment of more than EGP 2bn, about $38.9m. CATL contributes technology licensing, production equipment and training rather than capital.

The two companies had already signalled an intent to cooperate on battery cell procurement, and CATL said the pack deal builds on that.

What the plant changes

BME will supply Egyptian vehicle manufacturers directly, which CATL said fills a gap in the country's domestic battery pack manufacturing.

Local assembly is expected to reduce reliance on imported battery systems and cut some shipping and logistics costs, and to put pack supply closer to vehicle production lines, according to Arab Finance. The project targets a 40% local content ratio and aims to serve both the Egyptian and international markets, Zawya reported. Commercial vehicle maker MCV and automotive supplier Auto D set up BME, giving the venture local industry backing, according to CnEVPost.

The announcement covered pack assembly and did not mention local cell production.

For Egyptian car buyers, the first phase changes little in the near term: its output is aimed at heavy commercial vehicles, not passenger cars.

Capacity and product plans

BME plans a second phase that would lift annual capacity to 5 GWh, five times the first-phase figure, and extend the product range to passenger vehicle packs and energy storage systems for solar and wind power, according to Zawya.

Egyptian officials describe the factory as an industrial base for battery systems. Hashem said the plant represents a step towards new domestic manufacturing capability as the global auto industry shifts to electric vehicles and storage. The stated aims include technology transfer, a local supply chain and the technical skills that go with them. Local output is also expected to give vehicle makers faster response times and more flexibility on electric vehicle programmes, according to Arab Finance.

The project is expected to create export opportunities as well, according to Arab Finance.

Why Egypt wants it

Madbouly called for swift implementation and the next executive steps. He described the agreement as part of efforts to localise battery manufacturing.

Hashem said automotive component industries are a key element of Egypt's national automotive industry development programme. They can help attract global vehicle manufacturers to the country. He also cited Egypt's location and engineering base as advantages in the regional battery industry. Ghobour said the partnership combines CATL's battery technology, production equipment and technical support with Egyptian manufacturing and engineering capabilities.

What it means for CATL

For CATL, the Egyptian plant is small. The first phase's 1 GWh is a fraction of the 289.6 GWh of batteries CATL installed in the first seven months of 2026, up 26.6% year on year for a 39.9% global market share, according to SNE Research.

The company is pushing into commercial vehicle batteries abroad. It launched its Tectrans II line at the IAA Transportation show in Hanover on 14 September, and the heavy truck version supports up to 1,000 kilometers of range in its highest-capacity configuration, CnEVPost reported.