China’s ZOE Energy Storage has signed a joint venture agreement with a Saudi partner to develop Saudi Arabia’s first battery energy storage system (BESS) manufacturing facility.

The project will also mark ZOE Energy’s second overseas manufacturing base after its 6 gigawatt-hours (GWh) facility in Hungary.

The Saudi facility will have a total production capacity of 18 GWh and will be developed over a 150-acre site in two phases.

Phase I, with a manufacturing capacity of 6GWh, is scheduled to commence production in the first quarter of 2027.

The facility is expected to serve markets across the Gulf region, Middle East and North Africa (MENA), Central Asia, and Africa.

The investment aligns with Saudi Arabia’s targets, which include 130 gigawatts (GW) of renewable energy capacity, 48GWh of energy storage and 50 percent clean electricity generation by 2030

As part of the project, ZOE Energy said a Green Energy Academy will be established at the manufacturing complex to train certified talent and support localisation of technical expertise within the Kingdom.

Huang Jun, Chairman of ZOE Energy Group said the facility will deliver will tailored storage solutions for  extreme desert climates and set a benchmark for similar regions worldwide.  

The press statement didn't disclose the name of the Saudi partner, the location of the BESS manufacturing facility and investment involved.

(Writing by Dennis Daniel; Editing by Anoop Menon) (anoop.menon@lseg.com)

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