Oman Signs USD 250 Million EV, Battery Cell Manufacturing Deal at Duqm SEZ

Oman's Public Authority for Special Economic Zones and Free Zones has signed an investment usufruct agreement with EL B&T to establish an electric vehicle and battery cell manufacturing project at the Special Economic Zone at Duqm, marking a major push towards green industrialisation in the Sultanate.

The project, valued at around RO96.2 million (USD 250 million), will be developed in two phases with a planned production capacity of 60,000 electric vehicles annually and up to 1.6 million battery cells after completion of Phase II. The agreement was signed by Qais Al Yousef, Chairman of OPAZ, and Dr Young Ill Kim on behalf of EL B&T.

Ahmed Akaak, CEO of SEZAD, said the project aligns with Oman’s efforts to localise advanced manufacturing industries and attract investments into the electric mobility sector. He noted that the facility will become the second automotive-related project in Duqm after the launch of production operations at Karwa Motors several years ago.

Akaak added that the project strengthens Duqm’s growing green industries ecosystem, following multiple agreements signed in wind turbine manufacturing. He said the zone aims to localise advanced EV technologies and expand investments in green manufacturing in line with Oman Vision 2040 and the country’s carbon neutrality goals.

Phase I of the project will span 467,000 square metres, while an additional 429,000 square metres has been earmarked for the second phase. The facility is expected to help build an integrated EV industrial ecosystem in Duqm by strengthening battery and component value chains and attracting related industries in the future.

Dr Young Ill Kim said commercial operations are targeted to begin by March 2028. He added that the company plans to integrate green energy into production processes through a dedicated green power station that will serve as the primary energy source for the facility.

Ahmed Al Rajhi, Acting Head of the Green Industries Department at SEZAD, said Duqm was selected due to its strategic location, advanced infrastructure, investment incentives, and flexible regulations supporting industrial growth and sustainability. He added that the project reflects rising international confidence in Duqm as a regional hub for sustainable and innovation-driven industries.

Headquartered in Seoul, EL B&T develops and manufactures electric vehicles and related technologies including electric motorcycles, buses, trucks, powertrain systems, and spare parts. The company also has partnerships and projects across India, Türkiye, and other regional markets.

During the first phase, production will primarily cater to Oman’s domestic market before gradually expanding exports to GCC, Middle East, and North African countries.