RO 188 Million Electric Battery Project in Salalah Free Zone: Key Insights for Investors and Entrepreneurs in Oman
Salalah Free Zone Partners with GFCL Electric Power for Advanced Battery Chemicals Project
صلاله: The Public Authority for Special Economic Zones and Free Zones (OPAZ) has joined forces with Salalah Free Zone to sign a usufruct agreement for the establishment of an advanced electric battery chemicals project by GFCL Electric Power, a division of the global Anox GFCL Group. The agreement was finalized by Eng. Ahmed bin Hassan al Dheeb, Vice Chairman of OPAZ; Dr. Ali bin Mohammed Tabuk, CEO of Salalah Free Zone; and B.C. Jin, CEO of GFCL Electric Power.
The project entails a total investment exceeding RO 188 million, to be executed in phases over the next four to six years. The first phase alone will see an investment of approximately RO 73 million. Spanning around 370,000 square meters, the facility will manufacture lithium iron phosphate, ammonium phosphate, iron salts, and carbon materials essential for batteries used in electric vehicles, energy storage, and modern electronic technologies. Gradually, the project aims to support the production of up to 100 GWh of batteries, catering to the electric vehicle sector and various energy storage solutions.
Dr. Ali Tabuk remarked that the agreement underscores the strong collaboration between Invest in Oman and OPAZ, reflecting an increased confidence in the nation’s investment climate. He described this initiative as a strategic enhancement for Salalah Free Zone, highlighting its importance in promoting green industries, attracting high-quality projects, and positioning Oman as a regional hub for advanced battery manufacturing.
Dr. Saeed bin Khalifa al Qarini, Director General of Investment Development at OPAZ, pointed out that the project aligns with Oman’s ambition for net-zero carbon emissions by 2050 and the goals laid out in Oman Vision 2040 for economic diversification and sustainable industries. He noted its potential to foster global partnerships in the electric vehicle and energy storage sectors, enhance the competitive edge of economic zones, and attract foreign direct investment in renewable energy-related industries.
Additionally, the project aims to create a local base for lithium battery materials, generate both direct and indirect employment opportunities, cultivate the skills of Omani youth, and offer extensive investment prospects in battery system components. OPAZ has also linked essential service incentives to ensure sustainable local value, promote industrial innovation, and empower Omani talent.
GFCL Electric Power plans to contribute to community development by forming strategic partnerships with small and medium enterprises through a corporate social responsibility program focused on delivering tangible local impact and fostering business growth.
The signing ceremony was attended by Shaikh Dr. Ali bin Masoud al Sunaidy, Chairman of OPAZ, along with other officials from the Authority, Salalah Free Zone, and GFCL. — ONA
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The recent agreement to establish an advanced electric battery chemicals project in Salalah represents a significant strategic opportunity for businesses in Oman. This venture not only aligns with Oman’s vision for economic diversification and sustainability but also underscores the potential for local industries to flourish within the growing global electric vehicle and energy storage markets. Smart investors and entrepreneurs should now consider the ripple effects of this project, particularly in areas such as job creation, skills development, and partnerships, while remaining cognizant of the risks associated with market volatility in new technologies.
