Ammon News - The government plans to announce an investment opportunity to establish an electric vehicle assembly plant with an annual production capacity of up to 15,000 passenger vehicles. The project will target the domestic market, Arab and regional markets, and selected European markets.

The project is among the investment opportunities the government intends to present to European investors at the Jordan-EU Investment Conference, scheduled to take place in the Dead Sea region on November 19.

The project involves establishing a new electric vehicle assembly plant using the Completely Knocked Down (CKD) system, which relies on assembling vehicle parts and components through integrated industrial processes within Jordan.

The project will include assembly lines for vehicle bodies, painting operations, battery integration, and final assembly, as well as technical testing and quality inspections before vehicles are released to the market.

According to investment data, the project will adopt a manufacturing model that balances capital requirements, production volume, and domestic value added, allowing multiple stages of assembly and manufacturing to be carried out within Jordan.

The proposed model will also allow flexibility in introducing different electric vehicle platforms and models through a partnership with a global vehicle manufacturer, supporting a diverse range of products that can be produced at the plant.

The project aims to meet domestic demand for electric vehicles while exporting to Arab and regional markets and selected European Union markets, as part of efforts to develop industrial activities geared toward international markets.

Project to Establish an Automotive Electrical Wiring Systems Factory
Another investment opportunity in the manufacturing sector involves establishing a factory specializing in automotive electrical wiring systems in an industrial zone in Amman Governorate. The project will cover a total area of 30,000 square meters, including approximately 15,000 square meters allocated for manufacturing facilities and administrative offices.

The project aims to establish a factory supplying automotive electrical system components as a Tier 2 supplier in the automotive supply chain. It will feature 360 assembly stations for various product groups.

Its operations will include wire preparation, terminal crimping, wire distribution using digital assembly boards, connector installation, and protective material application, followed by electrical testing of all products before packaging and shipment.

According to the investment study, the project comes amid changes in global automotive supply chains, as manufacturers seek to diversify sourcing beyond Asia and move production closer to European and American markets.

The study estimates that between 8% and 12% of global automotive wiring system production capacity is undergoing geographical relocation, alongside the transition to electric vehicles, which is increasing the complexity and industrial value of electrical systems.

It noted that battery-electric vehicles require more complex wiring systems, while the high-voltage wiring systems segment for electric vehicles is recording estimated annual growth rates of between 17% and 25%.

The project will follow a phased strategy for entering export markets, beginning with the spare parts market, then expanding to Tier 2 suppliers in the European Union and original equipment manufacturers (OEMs) in the United States, before moving into the production of high-voltage electrical system components for electric vehicles.

Starting in its fifth year of operation, the factory aims to expand production of high-value wiring systems designed for electric vehicles and high-voltage applications, capitalizing on the growing number of electrical components used in modern vehicles.

The two projects are part of the investment opportunities in the manufacturing sector that the Jordan-EU Investment Conference aims to promote to attract new investments and develop industrial partnerships between Jordanian and European investors.