BUSINESS

CATL Licenses Battery Pack Tech to Egyptian Firm

Published: Sep. 18, 2026 11:37 a.m. GMT+8

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CATL has signed an agreement with Egyptian battery manufacturer BME to provide battery pack technology licensing, production equipment and training. Photo: CATL

Contemporary Amperex Technology Co. Ltd. (CATL) has agreed to license its battery pack technology to an Egyptian battery company, helping the latter to establish a local manufacturing base.

Under the agreement announced on Wednesday, CATL will also provide Battery Manufacturing in Egypt (BME) with production equipment and training services.

The partnership marks CATL’s first technology licensing project for battery packs, reflecting a broader strategic shift among Chinese battery-makers toward diversified overseas operations as exports face mounting geopolitical and trade barriers.

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CATL licensed battery pack tech to Egypt's BME, with equipment and training, to establish local production.
Initial capacity is 1 GWh, rising to 5 GWh; investment exceeds 2 billion EGP (~$38 million) with 40% localization target.
This is CATL's first battery pack licensing deal, part of its diversified overseas strategy amid trade barriers.

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Who’s Who

Contemporary Amperex Technology Co. Ltd.: Contemporary Amperex Technology Co. Ltd. (CATL), a Chinese battery-maker, has licensed battery pack technology to Egypt's Battery Manufacturing in Egypt (BME) for a local plant with initial capacity of 1 GWh, expanding to 5 GWh. It also uses licensing models in the US with Ford and Tesla, and owns factories in Germany, Hungary, and Spain.

Battery Manufacturing in Egypt: Battery Manufacturing in Egypt (BME) is a joint venture between Manufacturing Commercial Vehicles and Auto D. It will build a battery pack plant using CATL's licensed technology, equipment, and training. Initial investment exceeds $38 million, with a target of 40% component localization and capacity growing from 1 GWh to 5 GWh.

Manufacturing Commercial Vehicles: Manufacturing Commercial Vehicles is an Egyptian commercial vehicle maker. It formed a joint venture (BME) with Auto D to build a battery plant. BME will fully fund the facility's construction, which will initially produce battery packs for heavy commercial vehicles, expanding to passenger cars and energy storage.

Auto D: Based on the article, Auto D is an Egyptian auto industry solutions provider. It is part of a joint venture with Egyptian commercial vehicle maker Manufacturing Commercial Vehicles, forming Battery Manufacturing in Egypt (BME). This joint venture will fully fund the construction of a battery plant, which will initially produce battery packs for heavy commercial vehicles.

Stellantis NV: Stellantis NV is a partner of CATL in a Spanish battery plant, where CATL holds a 50% stake in the facility built with Stellantis. This collaboration is part of CATL's strategy to diversify overseas operations amid trade barriers.

Ford Motor Co.: In the U.S., CATL uses a technology licensing model with Ford Motor Co. Ford funded a battery plant where CATL holds no shares but supplies lithium iron phosphate battery technology licensing and operational services. This partnership reflects CATL's strategy to expand overseas while navigating geopolitical and trade barriers.

Tesla Inc.: According to the article, Tesla Inc. has an indirect cooperation with CATL for its U.S. lithium iron phosphate battery plant. This plant uses production lines sourced directly from the Chinese company, CATL.

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What Happened When

Before September 2026：: CATL adopted a technology licensing model with Ford Motor Co. for a U.S. battery plant (no shares held by CATL), and has indirect cooperation with Tesla Inc. for its U.S. lithium iron phosphate battery plant (specific dates not provided in the text).

Before September 2026：: CATL wholly owns factories in Germany and Hungary, and holds a 50% stake in a Spanish plant built with Stellantis NV (specific dates not provided in the text).

2026：: Construction of the Indonesian integrated supply chain project (nickel mining, cathode materials, batteries, recycling) is expected to proceed, with total investment near $6 billion.

As of 2026：: Initial investment in the Egyptian plant exceeds 2 billion Egyptian pounds ($38 million), with a target of 40% component localization; the plant aims to start with an annual production capacity of 1 GWh, planned to increase to 5 GWh after a second phase.