Muscat: A project investment exceeding OMR188 million aimed at battery manufacturing will significantly advance the transition to cleaner energy sources.
This initiative will assist Oman in reaching net-zero greenhouse gas emissions by 2050, while also boosting the proportion of electricity derived from renewable sources and improving energy efficiency.
The investment will be rolled out in phases over a period of four to six years, with the initial phase alone valued at over OMR73 million.
Spanning approximately 370,000 square metres, the project will concentrate on the production of lithium iron phosphate (LFP CAM), ammonium phosphate, iron salts, and carbon materials utilized in battery applications for electric vehicles, energy storage, and cutting-edge electronic technologies.
The facility is anticipated to facilitate the production of up to 100 gigawatt-hours of batteries in stages, catering to both the electric vehicle sector and energy storage solutions.
The Public Authority for Special Economic Zones and Free Zones (OPAZ), in collaboration with the Salalah Free Zone, commemorated the signing of an agreement for an advanced battery chemical materials project to be executed by GFCL EV (SFZ) LLC, a subsidiary of the global InoxGFL Group.
The signing ceremony occurred at the headquarters of the Public Authority for Special Economic Zones and Free Zones, attended by Sheikh Dr. Ali bin Masoud Al Sunaidy, Chairman of OPAZ, along with senior officials from the Authority, the Salalah Free Zone, and GFCL. The agreement was signed by Eng. Ahmed bin Hassan Al Dheeb, Deputy Chairman of OPAZ, Dr. Ali bin Mohammed Tabouk, Chief Executive Officer of Salalah Free Zone, and Bimlesh ChanderJain, Authorized Manager of GFCL EV (SFZ) LLC.
Dr. Ali bin Mohammed Tabouk, the CEO of Salalah Free Zone, remarked, “This agreement is a result of collaboration with ‘Invest Oman’ and the Public Authority for Special Economic Zones and Free Zones, demonstrating the increasing confidence in Oman’s investment landscape. It signifies a strategic enhancement to the Salalah Free Zone, illustrating its capability to draw high-value projects within the green industry sector. This initiative will serve as a catalyst for promoting green technologies, solidifying Oman’s status as a regional center for advanced battery manufacturing.”
He further emphasized that the project will aid in knowledge transfer and the localization of expertise, while also nurturing partnerships with SMEs and generating quality job opportunities for local talent, aligning with the objectives of Oman Vision 2040 to establish a diverse and sustainable knowledge-based economy.
Dr. Said bin Khalifa Al Quraini, Director General of the Investment Development Sector at OPAZ, mentioned that the Authority is focused on attracting strategic projects that align with Oman’s ambition of achieving carbon neutrality by 2050 and the economic diversification goals outlined in Oman Vision 2040.
He added, “This project marks another significant achievement for green industries within the economic zones, free zones, and industrial cities managed by the Authority. It paves the way for new global partnerships in the electric vehicle sector, including equipment, spare parts, and advanced clean energy storage solutions. This is a crucial step towards reinforcing Oman’s role as a regional hub for clean energy industries and future technologies, while also enhancing the competitive edge of these zones in attracting foreign direct investment.”
The initiative aims to create a local foundation for the production of lithium battery materials, thereby unlocking significant investment opportunities throughout the battery value chain. Additionally, it will generate both direct and indirect employment and enhance the skill sets of Omani youth in this crucial industry.
In collaboration with the National Negotiation Team, OPAZ has endeavored to connect the project with vital service incentives to ensure sustainable local value through economic diversification, industrial innovation, technology transfer, and the establishment of a robust national supply chain that empowers Omani talent.
Aligned with its dedication to community development, GFCL intends to forge strategic partnerships with SMEs via a comprehensive corporate social responsibility program aimed at making a meaningful impact on the local community and promoting the growth of local enterprises.
