Ethiopia Proposes to Manufacture EVs

February 2, 2025

(3 Minutes Read)

Ethio-Engineering Group (EEG) is gearing up to manufacture electric vehicles in Ethiopia, CEO Suleiman Dedefo announced.

According to the CEO, the country has abundant lithium, a key battery component, but currently exports it at low prices. EEG aims to partner with technology providers to process lithium locally for battery production.

In April last year, the government announced a shift for the Ethio-Engineering Group, revealing its transition to assembling electric vehicles and machinery. In June, the group signed a memorandum of understanding with Electrify Ethiopia to establish manufacturing facilities in Ethiopia. The partnership focused on electric vehicle supply systems, battery storage systems, and critical components.

With 550 engineers, the group plans to assemble electric public transport and automobiles. EEG is a governmental business enterprise re-established in September 2020 under the FDRE Council of Ministers Regulation No. 475/2020. It is engaged in manufacturing and trading automotive products, agricultural types of machinery, construction types of machinery, power and electronic equipment, metal and metal products, and plastic and polymer products. The government sees the group, with its established capacity and expertise, as a critical player in achieving the government’s goal of phasing out imported petrol and diesel cars.