MUSCAT: Oman has secured a major investment in the fast-growing global battery supply chain with the launch of a $ 1 billion project to produce lithium-ion battery anode materials in Sohar Freezone.
The project, led by China's Zhongke Electric through its subsidiary Zhongke Shenzhen (Hong Kong), marks the establishment of one of the company's largest overseas production facilities and reinforces Oman's ambitions to become a regional hub for clean energy and advanced manufacturing.
Construction work has officially commenced following the laying of the foundation stone for the facility, which will have a planned production capacity of 200,000 tonnes of anode materials annually. The development will be implemented in three phases to meet rising international demand for battery components driven by the global energy transition.
The investment reflects the collaborative efforts of Invest Oman, Sohar Freezone, the Special Economic Zone at Duqm and the project developer. It also highlights the Sultanate of Oman's growing appeal as a destination for high-value industrial investments, supported by its strategic location, advanced logistics infrastructure and competitive investment incentives.
Ibtisam bint Ahmed al Farouji, Under-Secretary of the Ministry of Commerce, Industry and Investment Promotion for Investment Promotion, described the project as a significant addition to Oman's advanced manufacturing sector and evidence of increasing international confidence in the country's investment climate.
She said the investment aligns with national efforts to diversify the economy and expand industries linked to clean energy and emerging technologies. Invest Oman, she added, continues to focus on attracting high-quality investments, streamlining procedures and strengthening partnerships with global investors to support industrial localisation and sustainable economic growth.
Zhongke Electric said Oman was selected because of its favourable business environment, strategic access to international markets and industrial ecosystem capable of supporting renewable energy and technology-related industries.
The project is expected to strengthen Oman's position within global battery value chains while creating new opportunities to attract further investments in future-oriented industries. — ONA
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