China-based ZOE Energy Storage has signed a joint-venture agreement with an undisclosed Saudi Arabian partner to develop and build an 18GWh BESS in the kingdom.

The first phase will develop a BESS with an annual production capacity of 6GWh, which is scheduled to start operations in the first quarter of 2027.

Once operational, the BESS will contribute to the kingdom meeting its ‘Saudi Vision 2030’ clean energy targets, including 48GWh of energy storage and 130GW of renewables.

Financial details of the deal and the battery technology involved were not disclosed, but ZOE deploys liquid cooled containerised LFP cells in existing BESS systems.

According to ZOE, the 150‑acre Saudi facility will meet “top European manufacturing standards” and earn ‘made-in-Saudi’ certification by complying with local grid requirements and regulations. A green energy academy will also be set up on site.

The project will see Saudi become ZOE’s second overseas production hub following a similar operation in Hungary.

Huang Jun, chairman of the ZOE Energy Group, said: “The Middle East is a key engine of global energy transformation. This manufacturing base is a decisive step in our global strategy.”

ZOE said it shipped over 1,000 units of its commercial and industrial energy storage cabinets of varying capacities to the global market in 2025, including its flagship Z BOX-C.

Saudi Arabia has been at the centre of increasing commercial interest in developing energy storage and associated projects. Other Chinese companies with interest in the region include BYD, which is developing 12.5 GWh of new Saudi BESS projects. Earlier this year, CATL opened a ‘new energy aftermarket’ plant in Saudi Arabia featuring battery diagnostics, repair, maintenance, rework, training and recycling services to support its operations in the Middle East.

Last year, the US and Saudi agreed plans to cooperate on an expansion of ESS projects and critical minerals supplies.