Sungrow begins construction of $50M energy storage factory in Egypt

Sungrow Power Suez Energy Equipment has broken ground on a $50 million factory for advanced energy storage systems in the China-Egypt TEDA Suez Economic and Trade Cooperation Zone in Ain Sokhna.

The facility, described as the first of its kind in the Middle East and Africa, will assemble energy storage systems and is expected to create more than 100 jobs across manufacturing, production and technical operations, with a focus on local recruitment.

Minister of Industry Khaled Hashem said the project would support Egypt’s clean energy transition by enhancing the stability of the national electricity grid and increasing its capacity to integrate growing volumes of renewable energy.

He added that the investment would help transfer advanced technology and expertise, develop skilled Egyptian professionals and support local feeder industries. Hashem also urged the company to increase the use of locally manufactured components and strengthen cooperation with Egyptian institutions and research centres.

The project aligns with Egypt’s updated industrial strategy, which seeks to build a more competitive manufacturing base, attract advanced technology investments and deepen the country’s integration into global supply chains.

Hashem identified equipment and components for solar power and other renewable energy technologies as key enabling industries. He said Sungrow’s factory would help establish a domestic manufacturing base for energy storage systems and strengthen Egypt’s capabilities in the clean energy sector.

Suez Canal Economic Zone Chairman Mostafa Shekoun said the project represents an important step towards localising energy storage manufacturing and expanding Egypt’s renewable energy industries.

He added that the investment reflects confidence in the zone’s infrastructure, investment environment and integration between industrial areas and ports. It also underscores the growing economic partnership between Egypt and China and TEDA-Egypt’s role in attracting high-value industrial projects.

The factory is linked to strategic renewable energy developments, including Scatec’s Energy Valley project, supporting greater integration between renewable power generation and energy storage solutions.