Faced with the encirclement and interception of Europe and the United States, China's optical storage enterprises have to find new positions to go to sea. In just two years, a production chain of optical storage from China is quietly taking shape beside the Suez Canal. According to the official website of
China Electric Power Construction International Engineering Co., Ltd., on August 17, a foundation-laying ceremony was held for the project of Sunshine Power Egypt Energy Storage Manufacturing Plant. It is reported that the energy storage system plant was signed in January 2026, with an annual capacity of 10g Wh , and is expected to be put into operation in April 2027.
According to the agreement, Rees Tech will become the agent of Longi Green Energy's solar and renewable energy storage solutions in Egypt. At the same time, the cooperation agreement signed between Rees Tech and Weichuang Electric covers the supply of core equipment such as inverters, cables and lithium batteries for Egyptian photovoltaic projects.
Longji Green Energy also officially launched its integrated solar energy and energy storage solution "Longji ONE" in Egypt on August 11, local time. "Egypt's energy transition is entering a new phase where solar power, energy storage and smart management must work together," said James, Longi's regional president for Central and East Africa.
With the increasingly stringent trade barriers in Europe and the United States, China's optical storage enterprises are constantly expanding their territory overseas and looking for new opportunities. From Southeast Asia to the United States, and then to the Middle East, Chinese optical storage enterprises are now gathering in Egypt.
According to Digital New Energy DataBM.
September 6, 2024, EliTe Solar Boda Xinneng announced that it had invested more than 1 in Egypt. On December 16 of the same year, the groundbreaking ceremony of the project was held. It is planned to build 2G W solar cell and 3GW solar module production lines . In June
2025, Xinlinfei signed a project contract with TEDA (TEDA Group), which was developed by Xinlinfei to build an industrial complex for the production of solar modules in Ain Sokhna Industrial Zone, Suez Canal Economic Zone, Egypt. With a total investment of US $ 200 million, it is divided into two phases to build 2GW batteries + 2GW modules and localized production of key raw materials (such as silicon ingots and rods) . The project started on June 19, 2025. In August
2025, Jingao Technologies signed agreements with AHG of Egypt, Global South Utilities of the United Arab Emirates and Infinity Capital of Bahrain. 2.
First of all, Egypt is strategically located at the junction of the three continents of Africa, Asia and Europe; the Suez Canal connects the Red Sea and the Mediterranean Sea, the Indian Ocean and the Atlantic Ocean, and the sea transportation is convenient and relatively cheap. For optical storage enterprises, Egypt is not only a convenient access to the European and Middle East markets, but also a key springboard to open up the African market.
, the United States has not imposed high tariffs on Egypt. Not only that, Egypt also enjoys EU trade preferences. The EU-Egypt Association Agreement has been in force since 2004. The agreement establishes a free trade zone between the EU and Egypt and eliminates tariffs on industrial products. At the same time, Egypt is also a member of the Greater Arab Free Trade Area and enjoys tariff preferences from many Arab countries. In addition, Egypt is a core member of the African Continental Free Trade Area, and photovoltaic products produced in Egypt can enjoy certain preferential tariff treatment.
From Egypt's own point of view, the country has unique natural conditions for the development of photovoltaic industry. This area belongs to tropical desert climate, with long sunshine time throughout the year, and the sunshine time in most places is more than 2400 hours; the solar radiation is strong, and the total annual solar radiation is about 2000-3200kWh/㎡. However, at present, Egypt's electricity mainly comes from natural gas. According to Energy Stats and Ember data, natural gas will still account for about 79% of Egypt's power structure in 2025, and fossil energy will account for about 87%.
In order to reduce dependence on traditional fuels and ensure national energy security, Egypt has actively promoted energy transformation in recent years. The country proposes to increase the proportion of renewable energy generation to 42% by 2030.
According to the Middle East Economic Survey (MEES), renewable energy accounted for about 14% of Egypt's electricity generation in 2025. In June this year, a spokesman for the Egyptian Ministry of Electricity and Renewable Energy said in a media interview that by the end of 2026, the proportion of renewable energy in Egypt's national power structure will reach 17. This means that the demand for renewable energy in Egypt will be released rapidly in the next three years.
In addition to the local market demand in Egypt, as mentioned above, Egypt has a superior geographical location, and the construction of factories here can radiate the Middle East and African markets .
In recent years, under the background of global carbon neutrality, in order to promote the diversification of energy structure, ensure national energy security and solve the problem of domestic power supply, countries in the Middle East and Africa have announced ambitious renewable energy targets. For example, Saudi Arabia plans to achieve the target of 130GW renewable energy installation by 2030, adding at least 20GW annually; The UAE aims to more than triple its share of renewable energy to 19 by 2030.
Egypt's Central Bureau of Public Mobilization and Statistics (CAPMAS) data show that as of the first quarter of 2026, the working population was 35.412 million, an increase of 1. Although the country's minimum wage has been raised to 8000 Egyptian pounds (about 1064.8 yuan, 1 yuan ≈ 7.
All kinds of risks should not be underestimated. The exchange rate of the Egyptian pound fluctuates sharply, and the shortage of local high-tech talents deserves attention; More importantly, Egypt's local optical storage industry chain system is not yet perfect, the upstream and downstream supporting is weak, the core equipment, key raw materials and components are highly dependent on imports from China, and it is still difficult to build a stable localized supply system, which also buries a lot of supply chain hidden dangers for Chinese optical storage enterprises investing in Egypt. At the same time, the geopolitical situation in the Red Sea region continues to be tense, and multiple uncertainties such as geopolitical conflicts, shipping disturbances and local policy adjustments are intertwined, which may directly impact the continuity of production and operation of enterprises.
At the same time, the layout of domestic optical storage enterprises in Egypt is highly concentrated, which can easily arouse the focus of attention at the international level. Whether Europe and the United States will repeat the same trick and introduce a new round of trade containment measures for China's optical storage capacity is also a realistic question that enterprises going to sea need to face directly.
In addition, with the intensive landing of capacity layout, another hidden worry has gradually emerged.Affected
by periodic overcapacity and serious homogenization of products, China's domestic photovoltaic industry is still in the quagmire of fierce and disorderly "involution" competition and collective losses of the whole industry.
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