Sungrow has officially commenced construction on a new battery energy storage system factory located in Egypt’s Suez Canal Economic Zone. Representing a $50 million investment, the facility is situated within the China-Egypt TEDA Suez Economic and Trade Cooperation Zone in Ain Sokhna. With a projected annual production capacity of 10 GWh, the plant is scheduled to begin operations in April 2027. This development marks a significant milestone for the region, as it is recognized as the first specialized manufacturing facility for battery energy storage systems in the Middle East and Africa, aimed at supporting both domestic and international markets.
The project spans approximately 50,000 square meters and is expected to generate over 100 direct jobs. PowerChina has been appointed as the construction contractor for the site, which serves as its inaugural industrial manufacturing project in the country. The factory is a key component of a broader $1.8 billion series of renewable energy and localization agreements announced earlier this year. Among these is the Energy Valley project, developed by Norway’s Scatec, which has secured a 25-year power purchase agreement for 1.95 GW of solar capacity and 3.9 GWh of battery storage, with equipment slated for production at the new Sungrow plant.
This investment aligns with a wider trend of Chinese solar and storage manufacturers establishing operations within the Suez Canal Economic Zone. Other notable developments include a $200 million complex by Sunrev Solar and a $210 million ATUM Solar facility, which involves JA Solar as a technology partner. These projects reflect Egypt’s strategic initiative to localize the manufacturing of renewable energy equipment.
For Sungrow, the Egyptian plant represents a strategic move to localize its overseas manufacturing footprint. This follows the company’s recent announcement of a major facility in Poland and its ongoing expansion as a system supplier across the Middle East, including a significant 7.8 GWh project connected to the Saudi Arabian grid in late 2025. By establishing this manufacturing base in Egypt, Sungrow aims to better serve the accelerating utility-scale battery market in the region while reducing its dependence on importing complete systems from China.