Transport

Deal signed to build electric bus factory in Abu Dhabi

May 9, 2024, 9:37 AM

Emirates Global and Abu Dhabi Department of Economic Development plan to develop a factory that can produce electric buses and trucks

Abu Dhabi manufacturing facility
Plan includes charging networks
Commercial EV sales in infancy

Abu Dhabi is planning a factory to manufacture and build electric buses and trucks.

The Abu Dhabi Department of Economic Development has signed an agreement with Emirates Global Industries, part of Alfahim Group, for the project.

The agreement also includes plans to establish manufacturing facilities to meet the anticipated growth in demand for energy storage and charging networks.

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It follows the conclusion of Abu Dhabi’s inaugural DRIFTx, an international exhibition for smart, autonomous and sustainable urban mobility applications, at which 12 memoranda of understanding were signed to advance projects across land, sea and air.

DRIFTx also showcased the UAE’s first operational vertiport for vertical take-off and landing aircraft.

The Department for Economic Development said in a statement that it will support Alfahim Group to strengthen partnerships with international manufacturers to build on existing collaborations with Egypt’s MCV and China’s Sany.

Commercial EV sales have struggled to take off in the UAE. Analysts at BMI said around 50 units were sold in 2022, mainly vans and buses. They said a number of commercial EV tests are taking place in the UAE, including by the delivery company FedEx.

The agreement comes just weeks after the country’s Integrated Transport Centre signed a deal with Swedish tech company Einride to help to build the Abu Dhabi portion of the Falcon Rise Grid electrified road freight system.

Einride will deploy 1,000 electric heavy-duty trucks and 100 autonomous vehicles across Abu Dhabi and Al Ain, and install charging infrastructure.

The 550km Falcon Rise Grid is being developed over the course of five years and will stretch across Abu Dhabi, Dubai and Sharjah.

It will include a total of 2,000 electric trucks, 200 autonomous trucks and eight charging stations with more than 500 charging points.

Earlier this year, Californian commercial electric vehicle manufacturer HummingbirdEV also announced plans to establish a micro-factory in the UAE.