Saudi Arabia Pushes for Electric Vehicle Production and Development with Government and Private Sector Investments

Electric vehicle (EV) production and development in Saudi Arabia is an emerging industry, with the government and private companies investing in research and infrastructure to support the growth of EVs in the country.

In recent years, the Saudi government has announced plans to increase the number of EVs on the road as part of its Vision 2030 program, which aims to diversify the country's economy and reduce its dependence on oil. To achieve this goal, the government has set targets to increase the number of EV charging stations and to make it easier for consumers to purchase EVs.

One of the major players in EV production and development in Saudi Arabia is the state-owned oil company, Saudi Aramco. In 2020, the company announced a partnership with the U.S.-based EV maker Lucid Motors to build a factory in the country, which will produce EVs and their components. The factory is set to begin production in 2022 and will have the capacity to produce up to 150,000 vehicles per year. In addition to this, the Saudi Public Investment Fund (PIF) has purchased a 61% stake in Lucid and plans to launch its own EV brand called CEER.

Another player in the EV industry in Saudi Arabia is the government-owned Saudi Arabian Mining Company (Ma'aden), which is investing in the production of EV batteries. The company plans to build a facility in the country that will produce lithium-ion batteries for use in EVs.

Furthermore, Saudi Aramco may be involved in a joint venture with Renault and Geely to produce hybrid and low carbon engines. In addition to these large-scale investments, there are also a number of smaller private companies in Saudi Arabia working on EV development.

Following this, the EV production and development in Saudi Arabia is an emerging industry with a strong government and private sector support. With ambitious plans to increase the number of EVs on the road, and major investments in EV production facilities, the industry is poised to grow in the coming years.

Sources:

The Embassy of the Kingdom of Saudi Arabia (2022) "HRH Crown Prince Launches Ceer, the first Saudi electric vehicle brand" Available at: https://www.saudiembassy.net/news/hrh-crown-prince-launches-ceer-first-saudi-electric-vehicle-brand

Mihalascu, D (2022) "Lucid opens its first Middle East store in Saudi Arabia" Available at: https://insideevs.com/news/618588/lucid-opens-its-first-middle-east-store-saudi-arabia/

Shirouzu, N & Guillaume, G (2023) "Exclusive: Renault, Geely look to bring Aramco into engine venture, sources say" Available at: https://www.reuters.com/business/autos-transportation/renault-geely-look-bring-aramco-into-engine-venture-sources-2023-01-17/