Salalah Free Zone signs RO188mn deal for electric battery project

15/09/2025 04:44 AST

The Public Authority for Special Economic Zones and Free Zones (OPAZ), together with the Salalah Free Zone, has overseen the signing of an agreement for an advanced battery chemical materials project, which will be implemented by GFCL EV, a subsidiary of the global InoxGFL Group, in the Salalah Free Zone.

The signing ceremony took place at OPAZ headquarters in the presence of H E Sheikh Dr Ali bin Masoud al Sunaidy, Chairman of OPAZ, alongside senior officials from the Authority, the Salalah Free Zone, and GFCL EV. The agreement was signed by H E Eng Ahmed bin Hassan al Dheeb, Deputy Chairman of OPAZ; Dr Ali bin Mohammed Tabouk, Chief Executive Officer of Salalah Free Zone; and Bimlesh Chander Jain, Authorised Manager of GFCL EV.

The project represents an investment of over RO188mn and will be implemented in phases over four to six years, with the first phase alone valued at over RO73mn, according to a press statement.

Covering approximately 370,000 sqm, the project will focus on producing lithium iron phosphate, ammonium phosphate, iron salts, and carbon materials used in batteries for electric vehicles, energy storage, and modern electronic technologies. The facility is expected to support the staged production of up to 100 gigawatt-hours of batteries, serving both the electric vehicle industry and energy storage solutions.

Dr Tabouk said, "This agreement reflects the outcome of close coordination with 'Invest Oman' and OPAZ, and highlights the growing confidence in Oman's investment environment. It represents a strategic addition to the Salalah Free Zone, showcasing its ability to attract high-value projects in the green industry sector. This project will act as a driver for advancing green technologies, reinforcing Oman's position as a regional hub for advanced battery manufacturing."

He added that the project will contribute to knowledge transfer and the localisation of expertise, as well as fostering partnerships with SMEs and creating quality job opportunities for national talent, in line with the goals of Oman Vision 2040 to build a diverse and sustainable knowledge-based economy.

Dr Said bin Khalifa al Quraini, Director General of the Investment Development Sector at OPAZ, stated that the Authority is committed to attracting strategic projects aligned with Oman's goal of achieving carbon neutrality by 2050 and the economic diversification objectives of Oman Vision 2040.

He added, "This project is another milestone for green industries across the economic zones, free zones, and industrial cities overseen by OPAZ. It opens new horizons for global partnerships in the electric vehicle industry, equipment, spare parts, and advanced clean energy storage solutions. It is an important step towards consolidating Oman's position as a regional hub for clean energy industries and future technologies, while enhancing the competitive advantage of these zones in attracting foreign direct investment."

The project aims to establish a local base for lithium battery materials production, creating wide-ranging opportunities for investment across the battery value chain. It will also generate direct and indirect jobs and help develop the skills of Omani youth in this vital sector.

OPAZ, in collaboration with the National Negotiation Team, has worked to link the project with essential service incentives to achieve sustainable local value through economic diversification, industrial innovation, technology transfer, and the development of a strong national supply chain that empowers Omani talent.

In line with its commitment to community development, GFCL plans to build strategic partnerships with SMEs through a comprehensive corporate social responsibility programme designed to make a tangible impact on the local community and foster the growth of local businesses.

Muscat Daily