Suhar – Construction has begun on US$1bn lithium-ion battery materials project in Sohar Freezone.

Chinese manufacturer Zhongke Electric, through its subsidiary Zhongke Shinzoom launched the construction of a plant designed to produce up to 200,000 tonnes of anode materials annually, which will be developed in three phases and ranks among Zhongke Electric’s largest overseas production bases.

The project is aimed at meeting rising global demand for battery materials driven by the expansion of electric vehicles, energy storage systems and clean energy technologies.

The development marks a major step in Oman’s efforts to diversify its economy and establish itself as a regional centre for advanced manufacturing, clean energy industries and future technologies.

Zhongke Electric, one of China’s leading suppliers of lithium-ion battery anode materials, said the project forms part of its international expansion strategy and will strengthen its ability to serve global markets.

The investment is the result of cooperation between Invest in Oman, Sohar Freezone, the Special Economic Zone at Duqm and the Chinese company. It also highlights Oman’s efforts to attract advanced industrial projects through its strategic location, logistics network, industrial infrastructure and investment incentives.

H E Ibtisam bint Ahmed Al Farouji, Undersecretary for Investment Promotion at the Ministry of Commerce, Industry and Investment Promotion, said the project represents a major addition to Oman’s advanced industrial sector and reflects growing confidence among international investors.

“This investment is in line with Oman’s economic diversification goals and its focus on industries linked to modern technologies and clean energy,” she said.

H E Ibtisam added that Invest in Oman continues to attract high-value investments, facilitate procedures and strengthen partnerships with international companies to support the localisation of advanced industries and create sustainable economic opportunities.

Zhongke Electric said Oman was selected for the project because of its competitive business environment, strategic position connecting global markets and industrial and logistics infrastructure that supports renewable energy and technology-based industries.

The company noted that the project will contribute to strengthening Oman’s position in global battery supply chains while creating opportunities to attract further industrial investments in emerging sectors.