Egypt Emerges As A Solar Panel Manufacturing Hub With $210 Million Chinese-Backed Facility

Egypt is taking a significant step into solar panel manufacturing with the establishment of a new $210 million facility in the TEDA industrial zone in Sokhna. The Atum Solar project, backed by Chinese solar manufacturer JA Solar along with investors from the UAE, Bahrain, and Egypt itself, is expected to produce four gigawatts of solar components annually, split evenly between two gigawatts of solar cells and two gigawatts of solar modules. While these numbers may not appear extraordinary on a global scale, the project marks an important milestone in Egypt’s industrial and renewable energy development.

Egypt has considerable industrial potential, supported by a workforce of around 33 million people, including 2.5 million in the textile sector. The country’s literacy rate of approximately 75 percent ensures a labor force capable of understanding and following technical instructions, which is essential for manufacturing operations. By becoming a hub for solar cell and panel production, Egypt not only creates a domestic supply for its own growing renewable energy needs but also opens opportunities for exports, particularly to other African countries and the United States. The project is expected to generate more than 800 direct jobs, with many additional indirect employment opportunities likely to arise.

The Atum Solar plant offers a strategic advantage to JA Solar, enabling the company to bypass U.S. tariffs on Chinese solar cells by exporting from Egypt instead of China. This is part of a broader trend of Chinese firms moving some manufacturing operations overseas due to rising domestic labor costs and government encouragement under the policy slogan “Go out!” Chinese investments in sustainable energy abroad allow companies to expand their global footprint, access cheaper labor, and reduce tariff burdens. For example, panels produced at the Atum plant can be exported within Africa at lower costs thanks to low tariffs among African Union member states, while solar cells are targeted for the U.S. market.

Egypt’s domestic solar market is also expanding rapidly. By the beginning of 2026, the country will have installed approximately 2.8 gigawatts of solar capacity, most of it concentrated at the Benban Solar Park in the Aswan Governorate. The government plans to reach 12 gigawatts of sustainable energy by the end of 2026. The local demand for solar panels, therefore, ensures that domestically produced components can serve the growing electricity generation needs, reducing reliance on imports and supporting economic growth.

This move could position Egypt as a key player in solar manufacturing in the Middle East, similar to the role Vietnam plays in Asia. Vietnam now produces 18 gigawatts of solar panels annually and holds about 12 percent of the global market, a remarkable rise from almost no production a decade ago. If Egypt manages its industrial and policy framework effectively, it could replicate a similar success, becoming a regional hub for solar panel production.

The combination of foreign investment, local workforce capability, and growing domestic demand sets Egypt on a promising path in renewable energy manufacturing. With projects like Atum Solar, the country is not only strengthening its clean energy infrastructure but also creating new economic opportunities and positioning itself as a potential leader in solar technology production for the region and beyond.