Oman Signs EV Manufacturing Agreement with South Korean Firm EL B&T
📋 Key Takeaway: Oman has signed an agreement with South Korea’s EL B&T to launch an electric vehicle and battery cell manufacturing project in Duqm, aiming to boost local industry and sustainability.
Investment Agreement Signed Between Oman and EL B&T
On Sunday, the Public Authority for Special Economic Zones and Free Zones (OPAZ) of Oman formalized an investment usufruct agreement with South Korean company EL B&T. This agreement outlines the establishment of a manufacturing project focused on electric vehicles (EVs) and battery cells within the Special Economic Zone at Duqm (SEZAD). The signing ceremony featured H E Qais bin Mohammed Al Yousef, Chairman of OPAZ, and Young-il Kim, Founder and Chairman of EL B&T.
Valued at approximately RO96.2 million, the project is set to be developed in two phases, with an anticipated annual production capacity of 60,000 electric vehicles and 1.6 million battery cells upon the completion of the second phase. This initiative marks a significant step in Oman’s ambition to localize advanced industries and attract substantial investments in the automotive sector.
Project Details and Economic Implications
Ahmed bin Ali Akaak, CEO of SEZAD, highlighted that this venture is the second automotive project to be established in Duqm, following the earlier development of Karwa Motors. He emphasized that the project will enhance Duqm’s burgeoning green industries sector, complementing previous agreements in wind turbine manufacturing and other clean energy initiatives. This aligns with Oman’s Vision 2040 and its commitment to achieving net-zero carbon emissions by promoting sustainable manufacturing and clean technologies.
The first phase of the project will cover an area of 467,000 square meters, with an additional 429,000 square meters allocated for the second phase. This expansion is expected to foster an integrated industrial ecosystem for electric vehicles in Duqm, strengthening local value chains related to batteries and vehicle components while attracting complementary industries in the future.
Future Prospects and Environmental Initiatives
Kim indicated that EL B&T aims to commence commercial operations by March 2028 and is also planning to establish a green energy plant to power the production processes at the facility. Furthermore, the company is exploring the development of electric motors for speedboats and fishing vessels in collaboration with an Omani partner, which is part of broader efforts to reduce carbon emissions in Omani waters.
This project not only reflects Oman’s strategic push towards establishing itself as a regional hub for future industries but also creates significant opportunities for Omani youth in sectors such as electric vehicles, renewable energy, and green hydrogen.
Frequently Asked Questions
What is the value of the investment agreement signed in Oman?
The investment agreement is valued at approximately RO96.2 million.
When is the commercial operation of the EV manufacturing project expected to begin?
Commercial operations are targeted to commence by March 2028.
What are the production capacities planned for the project?
The project aims for an annual production capacity of 60,000 electric vehicles and 1.6 million battery cells.
How does this project align with Oman’s sustainability goals?
The project supports Vision 2040 and aims for net-zero carbon neutrality by promoting sustainable manufacturing.
What additional initiatives is EL B&T pursuing in Oman?
EL B&T is studying the development of electric motors for speedboats and fishing vessels to reduce carbon emissions.
