South Korean EV maker to invest $250m in Oman project

South Korean electric vehicle maker EL B&T plans to invest OMR96m ($250m) to produce EVs and battery cells in Oman’s Special Economic Zone at Duqm.

The project will be delivered in two phases and is expected to have capacity to make up to 60,000 vehicles and 1.6 million battery cells a year, according to the Oman News Agency, citing the Public Authority for Special Economic Zones and Free Zones.

The first phase will cover 467,000 sq metres, with a further 429,000 sq metres reserved for the second phase.

Sezad chief executive Ahmed Ali Akaak said the project is a new addition to the zone’s automotive sector and the second since Karwa Motors launched a bus manufacturing plant there.

Young Ill Kim, EL B&T’s founder and chair, said commercial operations are expected to start by March 2028.

He said the first phase will target demand in Oman, before expanding into GCC, Middle East and North Africa markets.

GCC countries are seeking to localise EV manufacturing.

In February, Ceer, Saudi Arabia’s first homegrown EV manufacturer, said it is building its supply chain and aiming to localise 45 percent of its materials and parts by 2034.

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Its chief executive, James DeLuca, said in February 2025 the company plans to roll its first vehicle off the production line in late 2026.

California-based Lucid has been majority-owned by the Public Investment Fund since April 2019.

In January, interim chief executive Marc Winterhoff said full-scale vehicle manufacturing is expected to begin in Saudi Arabia this year, transitioning from assembly at its facility near Jeddah.

PIF invested an additional $1bn in March 2024 and a further $1.5bn in August, taking its total outlay to $8bn for a 58.4 percent stake.