Egypt Seeks to Cement Energy Manufacturing Industry with China’s Partnerships

Egypt’s Kemet has formalised strategic partnerships with leading Chinese companies in renewable energy and energy storage, signing two cooperation agreements and one memorandum of understanding. 

The development was announced by the Cabinet in the foreign country, with the signings being witnessed by Mahmoud Esmat, the minister of electricity and energy during his official visit to China.

Kemet’s chairperson Ahmed El Abd signed a memorandum of understanding with Zhang Xin, the chairman of TBEA, a global leader in power engineering and electrical equipment, to work together on renewable energy systems. 

Reports indicate that the agreement includes localizing electrical power grid connection systems and founding Egypt’s first factory to produce inverters.

In a related development, El Abd entered into a cooperation agreement with Chinese group GCL to develop an integrated industrial complex for solar photovoltaic (PV) cell and module manufacturing. 

The 280,000-square-meter facility will have a production capacity of 5 gigawatts and an estimated investment of $500 million.

In addition, Kemet signed an agreement with Dai Deming, Chairman of Cornex, to establish a $200 million energy storage battery factory in Egypt. The facility, designed to rely on local industrial inputs, will produce 5 gigawatt-hours of storage annually.

During his visit, minister Esmat toured the partner factories in China, inspecting production lines, research laboratories, and testing centers. Discussions focused on design, operational, and technical aspects to ensure Egyptian facilities replicate the advanced technologies and efficiencies of their Chinese counterparts.

Esmat spoke of Egypt's ambition to raise local content in renewable energy projects to 60 percent, positioning the country as a regional hub for energy equipment manufacturing and power infrastructure development.

These agreements form part of a broader expansion of Egypt-China energy cooperation. Last week, China’s Sungrow signed an agreement to establish a 10-gigawatt-hour battery energy storage system manufacturing plant within the Suez Canal Economic Zone. Covering 50,000 square meters, the facility will be the first of its kind in the Middle East and Africa, with production expected to start in April 2027.