Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) has signed an investment usufruct agreement with Korean electric vehicle technology company EL B&T to establish an electric vehicle and battery cell production project in the Special Economic Zone at Duqm (SEZAD).

Valued at approximately RO96.2 million ($250 million), the project will be implemented in two phases, according to Oman News Agency (ONA), as reported by Emirates News Agency (WAM).

The agreement was signed by Qais Mohammed Al Yousef, Chairman of OPAZ, on behalf of the authority, while Dr. Young Ill Kim signed on behalf of EL B&T.

Once Phase II is completed, the facility is expected to have the capacity to produce up to 60,000 vehicles annually, along with 1.6 million battery cells.

Phase I will cover 467,000 square meters, while the company is expected to reserve an additional 429,000 square meters for the second phase of the development.

The project is expected to support the development of an integrated industrial ecosystem for the electric vehicle sector in Duqm by strengthening value chains linked to batteries and other components. It is also expected to attract complementary industries to the zone in the future.