Saudi Arabia is set to strengthen its clean energy manufacturing ambitions after ZOE Energy Storage signed a joint venture agreement with a Saudi partner to establish what the company describes as the Kingdom’s first large-scale battery energy storage system (BESS) manufacturing facility.
The project aligns with Saudi Arabia’s Vision 2030 strategy, which seeks to localise advanced industries and accelerate the transition toward renewable energy and sustainable power generation across the region.
Under the agreement, ZOE Energy will combine its battery storage technologies with local manufacturing capabilities to support Saudi Arabia’s growing renewable energy infrastructure and wider Middle East energy transition goals.
Two-Stage Expansion Plan
The manufacturing hub will be developed in two phases. The first phase is expected to begin operations in the first quarter of 2027 with an annual production capacity of 6 GWh. The second phase will increase total output to 18 GWh.
According to the company, the facility is intended to reduce reliance on imported energy storage systems while supporting Saudi Arabia’s renewable energy targets, including plans for 130 GW of renewable energy capacity, 48 GWh of storage deployment and generating 50% of electricity from clean energy sources.
The 150-acre complex will operate under European manufacturing standards and receive “Made in Saudi” certification while meeting local grid compliance requirements. The facility is also expected to serve regional markets across the Gulf, Middle East, North Africa, Central Asia and Africa.
As part of the initiative, ZOE Energy plans to establish a Green Energy Academy at the site to train Saudi talent and strengthen local expertise in battery storage and clean energy technologies.
Global Expansion Strategy
The Saudi facility will become ZOE Energy’s second overseas manufacturing base following its operations in Hungary and reflects the company’s broader strategy of expanding regionalised energy storage production globally.
“The Middle East is a key engine of global energy transformation. This manufacturing base is a decisive step in our global strategy,” said Huang Jun, Chairman of ZOE Energy Group.
The company added that its storage systems are being engineered specifically to withstand the extreme desert climate conditions common across the Middle East.
