The Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) has signed an investment usufruct agreement with South Korean electric vehicle technology company EL B&T to establish an electric vehicle (EV) and battery cell manufacturing project in the Special Economic Zone at Duqm (SEZAD).
The EV and battery cell project, valued at approximately $250 million (RO 96.2 million), will be developed in two phases with a planned production capacity of 60,000 electric vehicles annually and 1.6 million battery cells upon completion of Phase II. The agreement was signed by Qais Mohammed Al Yousef, Chairman of OPAZ, and Dr. Young Ill Kim, Founder and Chairman of EL B&T.
Eng. Ahmed Ali Akaak, CEO of SEZAD, stated that the EV and battery cell project supports Oman’s efforts to localize advanced industries and attract investment into the automotive manufacturing sector. He commented that the investment marks the second major vehicle manufacturing project in Duqm following the launch of operations at Karwa Motors several years ago.
Akaak further said that the project with EL B&T strengthens Duqm’s growing green industries sector, particularly following multiple agreements in wind turbine manufacturing. He said SEZAD aims to localize advanced EV industries and expand investment in sustainable manufacturing in line with Oman Vision 2040, carbon neutrality goals, and the transition to clean energy.
He noted that green industrial projects in Duqm are designed to position Oman as a regional hub for sustainable industries while supporting innovation and developing local expertise in electric vehicles, renewable energy, green hydrogen, and other future-focused sectors.
OPAZ – EL B&T plans two-phase development
Phase I of the EV and battery cell project will cover 467,000 square meters, while an additional 429,000 square meters has been earmarked for Phase II. The project is expected to support the development of an integrated EV industrial ecosystem in Duqm by strengthening battery and component supply chains and attracting complementary industries.
Image credits: ONA | Cropped by GBN
Dr. Young Ill Kim said EL B&T targets commercial operations by March 2028 and plans to integrate green energy into its production processes through a dedicated green power station at the Duqm facility.
He added that the company is studying the development of external electric engines for rigid inflatable boats (RIBs) and fishing boats in partnership with an Omani entity to help reduce marine carbon emissions. EL B&T is also exploring a joint venture to develop electric fishing boats for export to Indonesia, India, South Korea, and other international markets.
Strategic location of Duqm
Meanwhile, Eng. Ahmed Al Rajhi, Acting Head of the Green Industries Department at SEZAD, pointed out that Duqm was selected for the OPAZ -EL B&T project due to its strategic location, advanced infrastructure, investor-friendly regulations, and integrated incentives package.
Image credits: ONA | Cropped by GBN
He said that the EV and battery cell project reflects growing regional and international confidence in Duqm as an investment destination and supports Oman’s strategy to build a sustainable economy driven by innovation and clean technologies.
EL B&T expands regional EV footprint
EL B&T specializes in the development, manufacturing, and sale of electric vehicles and related components, including electric motorcycles, three-wheelers, buses, trucks, electric powertrain systems, and spare parts. Headquartered in Seoul, the company has established several projects and strategic partnerships in India, Turkey, and other regional and international markets.
Image credits: ONA | Cropped by GBN
During Phase I, production will focus on meeting demand in Oman before gradually expanding into GCC, Middle East, and North African markets. The EV and battery manufacturing project aligns with SEZAD’s 2025-2030 strategy to position Duqm as a regional hub for renewable energy and sustainable industries while creating new business and industrial opportunities.
