ZOE Energy Storage has signed a joint venture agreement with a Saudi partner to construct what the company describes as the Kingdom's first world-class battery energy storage system manufacturing facility, marking a significant move in the region's push toward clean energy infrastructure and reducing reliance on imported technology.

A Two-Phase Build Targeting 18GWh of Capacity

The facility will be developed across two distinct phases. Phase I, carrying a capacity of 6GWh, is scheduled to begin production in the first quarter of 2027. Phase II will then expand the total installed capacity to 18GWh.

According to the company, this expansion is designed to close what it characterizes as a major gap in large-scale storage localization, with the stated goal of ending Saudi Arabia's dependence on imported battery storage systems.

The manufacturing base will occupy 150 acres and is being designed to meet top European manufacturing standards. The facility will also pursue "Made in Saudi" certification and will be built in full compliance with local grid codes. ZOE says the plant has been specifically engineered for extreme desert climates to deliver storage solutions suited to the conditions of the region.

Alignment With Saudi Vision 2030 Targets

The project is positioned explicitly within the framework of Saudi Vision 2030, the Kingdom's wide-ranging economic and industrial transformation program. Saudi Arabia has set targets of 130GW of renewable energy capacity, 48GWh of energy storage, and 50% clean power generation.

ZOE states that once the facility is operational, it will contribute directly to meeting those benchmarks and accelerating the country's shift from a traditional fossil fuel exporter to a hub for clean energy equipment manufacturing.

Huang Jun, Chairman of ZOE Energy Group, commented on the significance of the deal: "The Middle East is a key engine of global energy transformation. This manufacturing base is a decisive step in our global strategy."

He added that ZOE intends to provide cutting-edge technology, quality manufacturing, and full-chain service to support the region's green transition and help build a new energy storage ecosystem.

ZOE's Second Overseas Production Hub

ZOE describes the Saudi facility as its second overseas manufacturing base, following an existing production hub in Hungary. The company frames both facilities as cornerstones of a broader global strategy that it characterizes as combining ZOE technology, local manufacturing partnerships, and global service capabilities.

The joint venture partner has not been publicly named in the announcement. The agreement brings together ZOE's advanced energy storage system technology with local production capacity, a model the company says it intends to replicate and scale in other markets.

Regional and International Export Ambitions

Beyond serving Saudi Arabia's domestic requirements, the facility is intended to supply markets across the Gulf Cooperation Council, the wider Middle East, North Africa, Central Asia, and Africa. This positions the manufacturing base not only as a domestic supply solution but as a regional export platform for battery storage products.

The scale of the addressable market reflects both the growing demand for utility-scale energy storage across emerging and developing economies and the strategic value of a manufacturing presence in Saudi Arabia, which sits at the geographic crossroads of several of these target regions.

A Green Energy Academy to Anchor Local Talent Development

A component of the project that goes beyond the physical manufacturing infrastructure is the establishment of a Green Energy Academy on-site. The academy is intended to train certified talent in energy storage technology and operations, with the explicit aim of achieving deep localization of core technical expertise within the Kingdom.

This emphasis on workforce development reflects a recurring theme in Saudi Vision 2030 initiatives, which broadly seek to increase the participation of local talent in high-technology industries rather than relying solely on expatriate or imported expertise.

By embedding the academy within the manufacturing facility itself, ZOE is positioning the training program as integral to the operational model rather than a peripheral initiative.

Context Within the Global Energy Storage Industry

The announcement comes as battery energy storage systems are attracting substantial investment globally, driven by the expansion of variable renewable energy sources such as solar and wind, which require storage to manage grid stability and supply reliability.

Saudi Arabia, with its abundant solar resources, has ambitious plans to deploy large quantities of solar generation capacity, making the availability of domestic battery storage manufacturing strategically important.

The 48GWh storage target Saudi Arabia has set as part of Vision 2030 represents a substantial volume of procurement that, without domestic manufacturing, would need to be met entirely through imports. ZOE's facility, if it reaches its Phase II capacity of 18GWh, would represent a meaningful share of that total target volume from a single site.

ZOE Energy Group's international manufacturing strategy, anchored by facilities in Hungary and now Saudi Arabia, reflects a broader pattern among energy storage companies of establishing regional production hubs to reduce logistics costs, meet local content requirements, and build closer relationships with national energy programs.

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