Outline proposals for cooperation and investment in battery manufacturing and energy storage projects in Egypt have been unveiled by China’s Tianneng Battery and Egyptian multinational the Mansour Group.

The Tianneng Power International subsidiary and Mansour have signed a memorandum of understanding covering a study of opportunities to produce lead acid and lithium batteries for EVs, according to Egypt’s State Information Service.

The September 2 MOU was witnessed by Egypt’s investment and foreign trade minister, Mohamed Farid, who said lithium batteries and components for new energy vehicles were among sectors the government sees as promising to expand domestic manufacturing.

Cooperation proposed with Tianneng would enable Egypt to benefit from the company’s expertise and advanced technologies while supporting the localisation of industries supplying new energy vehicles, Farid said.

Egypt’s government is ready to support the project study phase and eventually help find suitable industrial sites and expedite permits for land allocation and preparation, the minister said.

Tianneng VP and head of international business, Eric Xu, said the group was already evaluating possible manufacturing sites and preparing a feasibility study identifying what batteries could be produced domestically.

Batteries International reported last month that Tianneng Power International had warned of a potential half-year profit fall of up to 66% as high raw material costs hit its mainstay lead acid battery business — but said long-term prospects were strong.

Tianneng is also working to establish a “full-lifecycle lead battery industry chain” in Indonesia as part of its international expansion ambitions.

The Chinese battery major also signed a cooperation agreement with US lead and lithium giant Clarios last May focusing on the raw material supply chain, waste battery recycling, and full lifecycle management.