Egypt has secured a significant industrial investment after Kunming Chuan Jin Nuo Chemical Co. (CJN) signed a US$1 billion agreement with El Sewedy Industrial Development to establish an integrated phosphate chemical industries complex in the Sokhna Industrial Zone, part of the Suez Canal Economic Zone (SCZone).
The complex, which will cover 905,000 square meters, aims to transform Egypt’s abundant phosphate reserves into high-value products, shifting the country further up the global mineral-processing value chain. Construction and operations will be rolled out in three phases beginning in 2026.
Under Phase One, scheduled to begin next year with commercial operations starting in 2028, the facility will produce phosphoric acid along with key fertilizers such as diammonium phosphate (DAP) and triple superphosphate (TSP). Each product line is expected to reach an annual capacity of around 300,000 tonnes.
Phase Two, set for launch in 2029 and completion around 2031, will expand production to higher-purity phosphate chemicals including food- and industrial-grade purified phosphoric acid (PPA) and monopotassium phosphate (MKP). These products will mark the first time such advanced phosphate derivatives are manufactured in the Middle East, positioning Egypt as a regional hub for specialized chemical processing.
Phase Three, beginning in 2032 with expected commercial output by 2034, will shift the focus to battery-grade materials used in electric-vehicle manufacturing. These will include lithium iron phosphate (LFP) and lithium dihydrogen phosphate, key compounds in the global clean-energy supply chain.
The plan also includes the creation of a dedicated research and development center to drive innovation in phosphate-based technologies, support local technical training, and facilitate technology transfer into Egypt’s growing industrial sector.
Once fully operational, the project is expected to generate around 10,000 direct and indirect jobs. A significant share of production will be exported to markets in the Middle East, Africa, South Asia, and South America, strengthening Egypt’s position as a competitive exporter of value-added chemical products.
Officials say the project represents a major step in Egypt’s strategy to leverage its sizeable phosphate resources ,among the largest in the world, to boost industrial output, reduce reliance on raw-material exports, and integrate into high-growth global industries such as fertilizers and electric-vehicle technologies.
