Oman has signed a deal to produce up to 60,000 electric vehicles and 1.6 million battery cells annually at its Special Economic Zone in Duqm.
Oman is moving into electric vehicle manufacturing at scale. The Public Authority for Special Economic Zones and Free Zones, known as OPAZ, has signed a $250 million agreement with EL B&T, a Korean EV technology company. Together, they will build an EV and battery-cell manufacturing facility at the Special Economic Zone at Duqm.
The project reflects Oman’s broader effort to diversify its economy under Oman Vision 2040. For EVLife readers, the significance is clear. Oman is building an EV supply chain, not just discussing one.
What will the Duqm facility actually produce?
The project will roll out in two phases. The first phase will cover 467,000 square metres of industrial land. A further 429,000 square metres has been reserved for the second phase.
Once both phases are complete, the facility will produce as many as 60,000 vehicles per year. In addition, it will manufacture up to 1.6 million battery cells annually. OPAZ has described the project as part of a wider industrial ecosystem. That ecosystem is designed to draw in battery suppliers and other linked businesses.
The scale gives the site room to grow well beyond a basic assembly operation. Consequently, the project could become a regional anchor for EV component supply.
Why has Oman chosen Duqm for this investment?
The Special Economic Zone at Duqm is one of Oman’s largest development projects. It spans approximately 2,000 square kilometres. The zone is built around a deep-water port, industrial land, logistics facilities, and transport links.
Duqm already has utility infrastructure in place. An integrated electricity and water plant has been serving major industrial users for several years. Therefore, investors arriving at the zone have a ready-made base for large-scale manufacturing. They do not need to build core utilities from scratch.
The port access is particularly relevant for an EV manufacturer. Vehicles and battery cells produced at Duqm can be exported efficiently by sea. Meanwhile, raw materials and components can arrive through the same port.
How does this project fit into Oman’s wider investment push?
The Duqm EV deal did not arrive in isolation. In late April, OPAZ signed agreements for more than 200 million Omani rials’ worth of projects. Those projects span three locations: Duqm, Salalah, and Khazaen.
Several of those agreements are tied directly to the EV sector. For example, some cover EV batteries and active anode materials. As a result, Oman is building several linked layers of the EV supply chain simultaneously.
Oman Vision 2040 is the policy framework driving these decisions. The strategy pushes the country to move beyond oil and gas revenues. However, the EV investment wave shows that this is now producing concrete industrial commitments, not just policy documents.
What does EL B&T bring to the project?
EL B&T is a Korean company with a specialism in EV technology. The partnership with OPAZ gives the company access to Duqm’s infrastructure and the zone’s free-trade advantages. For EL B&T, Oman provides a manufacturing base with strong export geography.
Korea has produced several globally significant battery and EV technology companies. Therefore, EL B&T’s involvement gives the project credibility in terms of technical capability. The two-phase structure also gives both parties time to test production before committing to full capacity.
What does this mean for the regional EV supply chain?
Gulf states have generally relied on importing EVs from established markets. However, Oman is now producing them domestically. In addition, the battery-cell component of the project means Oman is targeting one of the most valuable parts of the EV production process.
Battery cell manufacturing requires significant capital and technical expertise. Consequently, this investment signals a more serious industrial ambition than vehicle assembly alone. The combination of cell production and vehicle assembly in one zone gives the project real supply-chain depth.
For anyone watching the global EV industry, Oman’s move at Duqm is worth following closely. The numbers are substantial. The location has genuine logistical advantages. The phased approach gives the project a credible path to full-scale production.
