UAE and Jereh forge clean energy push
Hyphen Web Desk
The UAE Ministry of Investment has signed a memorandum of understanding with China’s Jereh Group to develop an integrated clean energy and industrial platform in the Emirates, in a move that aligns industrial expansion with lower-carbon power and deeper commercial ties between Abu Dhabi and Beijing. The agreement was signed by Mohammad Abdulrahman Alhawi, Undersecretary at the Ministry of Investment, and Li Weibin, Executive President of Jereh Group, during the official China visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.
Officials presented the pact as more than a conventional investment memorandum. Its stated aim is to build an integrated platform combining advanced energy technology with industrial production, allowing power generation and manufacturing capacity to develop in tandem. That matters because the project is being framed not only as a bilateral investment story but also as part of the UAE’s effort to position itself as a regional base for next-generation energy applications and advanced manufacturing.
The platform is expected to unfold in phases over the next three to five years and includes some of the most ambitious elements now appearing in the Emirates’ industrial policy mix. According to details released alongside the announcement, Jereh plans to pursue small modular reactor deployment, establish an anode materials manufacturing facility with a target capacity of 100,000 tonnes a year, and build lithium battery recycling capability. The design is intended to be integrated, with the proposed reactor technology ultimately helping to power energy-intensive industrial operations.
That structure gives the agreement significance beyond its headline value. Small modular reactors remain an emerging technology globally, attracting attention for their potential to provide steady, zero-carbon baseload electricity with a smaller footprint than conventional nuclear plants. At the same time, anode materials and battery recycling sit at the heart of supply chains tied to electric vehicles, stationary storage and wider electrification. By linking those strands inside one proposed platform, the UAE is signalling that it wants a larger role not only in clean power generation but also in the industrial ecosystem surrounding energy transition technologies.
For the UAE, the timing fits a broader policy direction. The country has been trying to marry its long-standing hydrocarbons strength with investment in renewables, nuclear power, clean technology and advanced industry. Official strategy documents say the national energy plan aims to expand the contribution of cleaner energy sources, diversify supply and cut emissions intensity over time. The Jereh pact supports that approach by pairing industrial manufacturing with cleaner electricity ambitions rather than treating them as separate policy tracks.
For China, the deal adds another layer to an already fast-growing commercial relationship with the Emirates. UAE officials and multiple reports this week said non-oil trade between the two countries climbed to $111.5 billion in 2025, crossing the $100 billion mark for the first time and marking annual growth of 24.5 per cent. Both sides have also said they are targeting $300 billion in trade by 2030. Those figures help explain why investment agreements signed during high-level visits are increasingly spanning logistics, manufacturing, energy technology and capital flows rather than simple commodity exchange.
The agreement also reflects the UAE’s pitch to overseas manufacturers and strategic investors. Officials have repeatedly argued that the country offers political stability, access to global shipping routes, established industrial zones and policy support for export-led growth. Jereh is not entering a blank landscape: the group already has a footprint in the Emirates and has previously announced partnerships in Abu Dhabi tied to energy equipment and local manufacturing. That gives this MoU a degree of industrial continuity, even as its clean energy scope is wider than earlier cooperation.
Questions will nonetheless follow the announcement. MoUs are frameworks, not final investment decisions, and projects involving modular reactors face regulatory, financing and technology hurdles even in markets that are enthusiastic about nuclear innovation. Battery materials and recycling plants, meanwhile, depend on feedstock security, cost competitiveness and downstream demand. Much will turn on whether the two sides move from strategic intent to execution, and how quickly permitting, partnerships and infrastructure planning advance.
Officials presented the pact as more than a conventional investment memorandum. Its stated aim is to build an integrated platform combining advanced energy technology with industrial production, allowing power generation and manufacturing capacity to develop in tandem. That matters because the project is being framed not only as a bilateral investment story but also as part of the UAE’s effort to position itself as a regional base for next-generation energy applications and advanced manufacturing.
The platform is expected to unfold in phases over the next three to five years and includes some of the most ambitious elements now appearing in the Emirates’ industrial policy mix. According to details released alongside the announcement, Jereh plans to pursue small modular reactor deployment, establish an anode materials manufacturing facility with a target capacity of 100,000 tonnes a year, and build lithium battery recycling capability. The design is intended to be integrated, with the proposed reactor technology ultimately helping to power energy-intensive industrial operations.
That structure gives the agreement significance beyond its headline value. Small modular reactors remain an emerging technology globally, attracting attention for their potential to provide steady, zero-carbon baseload electricity with a smaller footprint than conventional nuclear plants. At the same time, anode materials and battery recycling sit at the heart of supply chains tied to electric vehicles, stationary storage and wider electrification. By linking those strands inside one proposed platform, the UAE is signalling that it wants a larger role not only in clean power generation but also in the industrial ecosystem surrounding energy transition technologies.
For the UAE, the timing fits a broader policy direction. The country has been trying to marry its long-standing hydrocarbons strength with investment in renewables, nuclear power, clean technology and advanced industry. Official strategy documents say the national energy plan aims to expand the contribution of cleaner energy sources, diversify supply and cut emissions intensity over time. The Jereh pact supports that approach by pairing industrial manufacturing with cleaner electricity ambitions rather than treating them as separate policy tracks.
For China, the deal adds another layer to an already fast-growing commercial relationship with the Emirates. UAE officials and multiple reports this week said non-oil trade between the two countries climbed to $111.5 billion in 2025, crossing the $100 billion mark for the first time and marking annual growth of 24.5 per cent. Both sides have also said they are targeting $300 billion in trade by 2030. Those figures help explain why investment agreements signed during high-level visits are increasingly spanning logistics, manufacturing, energy technology and capital flows rather than simple commodity exchange.
The agreement also reflects the UAE’s pitch to overseas manufacturers and strategic investors. Officials have repeatedly argued that the country offers political stability, access to global shipping routes, established industrial zones and policy support for export-led growth. Jereh is not entering a blank landscape: the group already has a footprint in the Emirates and has previously announced partnerships in Abu Dhabi tied to energy equipment and local manufacturing. That gives this MoU a degree of industrial continuity, even as its clean energy scope is wider than earlier cooperation.
Questions will nonetheless follow the announcement. MoUs are frameworks, not final investment decisions, and projects involving modular reactors face regulatory, financing and technology hurdles even in markets that are enthusiastic about nuclear innovation. Battery materials and recycling plants, meanwhile, depend on feedstock security, cost competitiveness and downstream demand. Much will turn on whether the two sides move from strategic intent to execution, and how quickly permitting, partnerships and infrastructure planning advance.
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