Egyptian Elsewedy Plans $1.3 Billion Algerian EV Plant

The Egyptian Elsewedy Group has announced plans for a significant industrial project in Algeria, focusing on the manufacturing of electric and hybrid vehicles. Revealed on the sidelines of the NAPEC 2026 exhibition in Oran, this initiative forms part of a broader $1.3 billion investment package the Egyptian industrialist is dedicating to various projects across Algeria. A feasibility study for the automotive plant has been submitted to the Prime Minister's services and is currently undergoing strategic review, aligning with the Algerian authorities' strategic roadmap to accelerate energy transition and reduce reliance on fossil fuels.

The planned vehicle manufacturing project will introduce two models under the "Elsewedy EZZ" brand, which are already in production in Egypt: a 100% electric version and a hybrid variant composed of 80% electric and 20% gasoline. The design integrates German and Chinese engineering components. Except for the engine, all vehicle elements are intended for local manufacturing. Elsewedy aims to achieve a national integration rate between 50% and 60% by establishing a comprehensive network of subcontracting and automotive supply chains.

Beyond the automotive sector, Elsewedy has also submitted requests for approval to establish a steel products factory and seven specialized units for manufacturing piping, PVC resin, optical fiber, pivot irrigation systems, and electrical transformers. These proposals have been met favorably by Algerian authorities. Additionally, three new production units for data cables, electrical insulators, and dry transformers commenced operations in 2026, boasting an 80% national integration rate through the use of locally produced steel. The group is exploring the construction of an aluminum factory, leveraging opportunities in the energy sector while addressing decarbonization goals. Elsewedy's ambitions extend to positioning Algeria as a regional export hub, targeting approximately twenty international destinations. It is projected that 25% of its local production, estimated at $25 to $30 million annually, will be allocated to international markets. As the sole local producer of high-voltage cables (up to 220 kV), Elsewedy has already contributed to significant savings for Algeria, with over $1 billion in import reduction, and 60 kV cable manufacturing adding a further $700 to $800 million in savings, consolidating Algeria’s industrial and logistical platform in collaboration with Sonelgaz.