Saudi Arabia gets first BESS manufacturing facility: ZOE Energy Storage starts at 6 GWh

Chinese battery storage manufacturer ZOE Energy Storage has signed a joint venture with an unnamed Saudi partner to establish a BESS manufacturing facility in the Kingdom, its second overseas production hub after Hungary.

The 150-acre facility will be built in two phases. Phase I targets 6 GWh of annual production capacity, with manufacturing set to begin in Q1 2027. Phase II expands that to 18 GWh, though no timeline for the second phase has been confirmed.

ZOE says the facility will carry “Made in Saudi” certification and comply with local grid codes, targeting supply to Saudi Arabia, the broader Gulf region, the Middle East, North Africa, Central Asia, and Africa. A Green Energy Academy is planned on site for technical training.

The Saudi partner has not been named in the announcement. ZOE has also not disclosed the facility’s capital cost or the ownership structure of the joint venture.

Previously in Saudi energy storage deals, Chinese battery manufacturer Cornex named Al Rajhi Electrical for a different 5.5 GWh localization and supply deal. Al Rajhi Electrical is a wholly owned subsidiary of the Saudi diversified conglomerate Al Rajhi Group and a major shareholder of ACWA POWER

Saudi Arabia has set targets of 130 GW of renewables, 48 GWh of energy storage, and 50% clean power generation as part of Vision 2030, creating demand for domestic manufacturing capacity that the country currently meets through imports.

“The Middle East is a key engine of global energy transformation. This manufacturing base is a decisive step in our global strategy,” said Huang Jun, chairman of ZOE Energy Group.