Oman to host one of the world's largest lithium-ion battery anode plants at Sohar Freezone

Dubai: Oman is set to host one of the largest overseas lithium-ion battery anode manufacturing facilities developed by China's Zhongke Electric, after the company launched construction of a $1 billion plant in Sohar, strengthening the Sultanate's ambitions to become a regional hub for clean energy industries and advanced manufacturing.

Zhongke Electric announced, through its subsidiary Zhongke Xingcheng (Hong Kong), the groundbreaking and commencement of construction works on the strategic project at Sohar Freezone. 

The facility will serve as one of the company's largest production bases outside China for anode materials used in lithium-ion batteries, supporting its global expansion plans and growing international demand for battery technologies.

The investment marks another step in Oman's efforts to position itself as a key player in global supply chains linked to the energy transition, while reinforcing its attractiveness as a destination for advanced manufacturing and future-focused industries.

The project reflects collaboration between Invest Oman, Sohar Free Zone, the Special Economic Zone at Duqm and Zhongke Electric, highlighting the Sultanate's ability to attract major international investments through its strategic location, advanced logistics infrastructure and competitive investment incentives.

Ibtisam Ahmed Al Farooji, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Investment Promotion, said the project represents a significant addition to Oman's advanced industrial sector and demonstrates growing confidence among international companies in the country's business and investment environment.

Al Farooji said the investment aligns with Oman's economic diversification strategy and its ambitions to expand industries linked to advanced technologies and clean energy solutions.

"Invest Oman continues to attract high-value investments, provide incentives, facilitate procedures and strengthen partnerships with global investors," Al Farooji added. "These efforts contribute to the localisation of advanced industries and the creation of sustainable economic opportunities."

The project involves the construction of a lithium-ion battery anode materials plant with an annual production capacity of up to 200,000 tonnes. The facility will be developed in three phases, with total investment estimated at approximately $1 billion.

Zhongke Electric said its decision to invest in Oman was based on the country's competitive economic environment, strategic position linking global markets and industrial and logistics capabilities that support the growth of renewable energy and advanced technology sectors.

The company added that the Sohar facility will strengthen its ability to serve international customers while supporting the development of resilient and diversified supply chains for the global battery industry.

The project is expected to strengthen Oman's position within the global battery value chain and create opportunities to attract additional industrial investments in future-oriented sectors, reinforcing the Sultanate's role as an emerging centre for clean energy technologies and advanced manufacturing.