Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) signed an investment usufruct agreement with EL B&T, a Korean electric vehicle( (EV) technology company, to establish a project for the production of electric vehicles and battery cells in the Special Economic Zone at Duqm (SEZAD).
The project has an investment value of approximately RO96.2
million ($250 million), reported Oman News Agency.
The agreement was signed on behalf of OPAZ by Qais Al
Yousef, Chairman of OPAZ while Dr Young Ill Kim signed on behalf of the
company.
The project will be implemented in two phases, with a
production capacity of up to 60,000 vehicles annually and 1.6 million battery
cells upon completion of Phase II.
Ahmed Akaak, CEO of SEZAD, said the new project comes as
part of joint government efforts to localise various industries in the
Sultanate of Oman and attract further investments in the vehicle sector.
The CEO of SEZAD explained that the project represents a new
addition to the vehicle sector in the zone and marks the second project in this
field after the launch of production at Karwa Motors several years ago.
Akaak shed light on the success achieved by the green
industries sector in the Special Economic Zone at Duqm following the signing of
several agreements in the field of wind turbine manufacturing.
He noted that the zone’s management seeks through these
projects to localise advanced industries in the EV sector and strengthen
investment in green manufacturing industries in line with the goals of Oman
Vision 2040 and the Sultanate of Oman’s strategy for carbon neutrality and the
transition towards clean energy.
He added that the green industrial projects being
implemented in the zone aim to position the Sultanate of Oman as a regional hub
for green industries, establish sustainability and innovation driven
industries, and develop the expertise of Oman’s youth in future industries,
including electric vehicle technologies, renewable energy projects, green
hydrogen, and other green industries.
Phase I of the electric vehicle and battery cell production
project in the Special Economic Zone at Duqm will cover an area of 467,000
square metres, while the company is expected to reserve an additional 429,000
square metres for the second phase.
The project is
expected to support the development of an integrated industrial ecosystem for
the electric vehicle sector in the zone by strengthening value chains linked to
batteries and other components, helping attract complementary industries in the
future.
Dr Kim said the company expects to reach commercial
operation by March 2028. He affirmed the company’s commitment to increasing the
use of green energy in its production processes, noting that plans include
establishing a green power station at the industrial facility in Duqm to serve
as the primary source of energy for operations.
Meanwhile, Ahmed Al Rajhi, Acting Head of the Green
Industries Department at the Special Economic Zone at Duqm, said the selection
of Duqm to host the project reflects the zone’s competitive advantages,
including advanced infrastructure, a strategic location, flexible legislation,
and an integrated package of investment incentives that support business growth
and sustainability.
He stated that the electric vehicle and battery cell
production project reflects the growing confidence in Duqm as a promising
investment destination at both the regional and international levels, and
represents a strategic direction towards building a sustainable economy based
on innovation and clean technologies in line with Oman’s carbon neutrality
goals.
EL B&T works in the development, manufacturing, and sale
of electric vehicles and their components, including smart electric vehicles,
electric motorcycles, electric three wheelers, electric buses, electric trucks,
electric powertrain systems, and spare parts.
The company is
headquartered in Seoul and has several projects and partnerships in India,
TĂĽrkiye, and countries across the region.
During Phase I, the project will focus on meeting demand in
the local market in Oman, with gradual expansion planned towards the GCC,
Middle East, and North African markets.
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