Sungrow breaks ground on 10 GWh battery storage factory in Egypt

Chinese inverter and energy storage manufacturer Sungrow has started construction of a battery energy storage system factory in Egypt with planned annual production capacity of 10 GWh.

A groundbreaking ceremony was held on Aug. 17 at the China-Egypt TEDA Suez Economic and Trade Cooperation Zone in Ain Sokhna, within the Suez Canal Economic Zone. The plant represents a $50 million investment and will occupy around 50,000 square meters, with approximately 18,000 square meters of building space. It is scheduled to begin production in April 2027.

The factory will assemble battery energy storage systems (BESS) and is expected to create more than 100 direct jobs. Egyptian authorities have described it as the first specialized BESS manufacturing facility in the Middle East and Africa, with production intended for the domestic market as well as exports. PowerChina is the construction contractor and said the facility is its first industrial manufacturing project in Egypt.

The project was formally announced in January as part of a package of renewable energy and localization agreements worth more than $1.8 billion. The agreements included Norwegian developer Scatec’s Energy Valley project, for which it has signed a 25-year power purchase agreement with the Egyptian Electricity Transmission Company covering 1.95 GW of solar and 3.9 GWh of battery storage.

Egyptian government documents said storage equipment for the Energy Valley development will be produced locally at Sungrow’s plant. The arrangement gives the factory a major local project to supply as it ramps production, while supporting Egypt’s push to localize renewable energy equipment manufacturing.

The investment comes amid a broader expansion of Chinese solar and storage manufacturing in the Suez Canal Economic Zone. China’s Sunrev Solar broke ground in 2025 on a $200 million complex in Ain Sokhna, with first-phase capacity of 2 GW each for solar cells and modules. A separate $210 million ATUM Solar complex, involving JA Solar as its Chinese technology partner, is being developed with 2 GW of cell capacity, 2 GW of module capacity and 1 GWh of energy storage system production.

For Sungrow, Egypt also represents a further step toward localized overseas manufacturing. In February, the company announced a €230 million factory in Wałbrzych, Poland, its first European manufacturing facility, with planned annual capacity of 20 GW of inverters and 12.5 GWh of storage systems.

The company has also expanded rapidly in the Middle East as a system supplier. A 7.8 GWh project using more than 1,500 Sungrow PowerTitan 2.0 systems was connected to the Saudi Arabian grid in December 2025. The Egyptian factory gives Sungrow a manufacturing base closer to a region where utility-scale battery deployment is accelerating, while reducing its reliance on supplying complete systems from China.