Chinese Giant Enters Saudi Arabia. Massive 18 GWh Energy Storage Manufacturing Plant to Be Built

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ZOE Energy Storage and Saudi Partner Launch Massive 18 GWh Battery Manufacturing Hub in Saudi Arabia

The global energy technology market is rapidly reshaping, with major players establishing new spheres of influence. Chinese manufacturer ZOE Energy Storage has officially announced a joint venture agreement with a Saudi partner to build a large-scale manufacturing facility for energy storage systems in Saudi Arabia.

The investment will ultimately reach an annual production capacity of up to 18 GWh, making it a key step in the Middle East’s strategy to reduce dependence on imported energy technologies.

Rapid Development and “Made in Saudi” Certification

The new production hub will be built on a 150-acre site and will become ZOE Energy Storage’s second overseas manufacturing base, following its earlier facility in Hungary.

The project is planned in two phases:

  • Phase I: production start in Q1 2027 with an initial capacity of 6 GWh per year
  • Phase II: expansion to the full 18 GWh annual capacity (exact timeline yet to be confirmed)

All systems produced at the facility will carry the official “Made in Saudi” certification and comply with local grid standards. The batteries manufactured there are expected to serve not only Saudi Arabia but also the broader Gulf region, the Middle East, North and East Africa, Central Asia, and other African markets.

The site will also include a dedicated Green Energy Academy, designed to train local technical talent and support workforce development.

Part of Saudi Arabia’s Vision 2030 Strategy

While financial details and ownership structure of the joint venture have not been disclosed, this project is part of a broader regional trend. Another Chinese company, Cornex, has previously signed a similar 5.5 GWh agreement with Al Rajhi Electrical, a partner linked to ACWA Power.

All of these initiatives align with Saudi Arabia’s Vision 2030 strategy, which targets 130 GW of renewable energy capacity, 48 GWh of domestic energy storage, and a 50% share of clean energy in the national grid.

According to ZOE Energy Group Chairman Huang Jun, the Middle East is becoming a key driver of the global energy transition, and establishing local manufacturing capacity in the region represents a strategic move for Chinese companies expanding their global footprint.

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