Oman Launches USD 1 Billion Lithium-Ion Battery Materials Plant in Sohar Free Zone

Oman has launched a major USD 1 billion industrial project to manufacture anode materials used in lithium-ion batteries, marking a significant step in the country's efforts to diversify its economy and strengthen its role in global clean energy supply chains.

Chinese company Zhongke Electric, through its subsidiary Chongqing Shenzhen (Hong Kong), has begun construction of the facility in Sohar Free Zone following the laying of the foundation stone. The project is expected to become one of the company's largest overseas production bases for lithium-ion battery anode materials and is a key component of its global expansion strategy.

Developed in collaboration with Invest in Oman, Sohar Free Zone, and the Special Economic Zone at Duqm, the investment reflects Oman's growing appeal as a destination for advanced manufacturing and clean energy industries.

The facility will have an annual production capacity of up to 200,000 tonnes of lithium-ion battery anode materials and will be developed in three phases to align with rising global demand. The materials produced will support industries such as electric vehicles, energy storage systems, and other clean energy technologies.

According to Oman's Ministry of Commerce, Industry and Investment Promotion, the project supports national economic diversification goals while helping localise advanced industries and create sustainable economic opportunities. Officials noted that Oman's strategic location, modern industrial infrastructure, logistics capabilities, and investment incentives continue to attract high-value international investments.

Zhongke Electric stated that Oman was selected due to its competitive business environment, strong connectivity to regional and global markets, and supportive ecosystem for renewable energy and technology-related manufacturing. The company also emphasised the country's suitability for long-term industrial investments tied to the global energy transition.

The project is expected to strengthen Oman's position in the international battery materials supply chain, boost the manufacturing sector, and attract further investments in clean energy, advanced technology, and value-added industries.