On the day of its founding, Saudi Arabia has reached a pinnacle in EV industry. The country is globally recognized for its efforts to diversify its economy beyond oil.
In recent years, the Kingdom has significantly focused on localizing the EV industry. This industry has become a core part of the national industrial strategy.
Vision 2030: Transforming Auto Sector
The EV industry is considered a promising sector, strongly supported by the Saudi government. This aligns with the Kingdom’s Vision 2030 plan.
Electric Vehicle (EV) Ambitious Production Goals
Saudi Arabia aims to produce approximately 500,000 electric vehicles annually by 2030. This ambitious plan places the Kingdom at the forefront of EV manufacturing.
Global Readiness for Electric Vehicle (EV)
According to the Global Electric Mobility Readiness Index by Arthur D. Little, Saudi Arabia ranks 23rd worldwide. This ranking reflects its readiness for the electric vehicle era.
Leading Market in Gulf Region
A new report by Arthur D. Little shows that Saudi Arabia is one of the largest car markets in the Gulf Cooperation Council region. It accounts for over 50% of new car sales in the area.
Green Saudi Initiative 2021
In 2021, Saudi Arabia adopted the Green Saudi Initiative. This initiative aims to boost green energy, with a focus on electric vehicles. It targets transforming 30% of cars in Riyadh to electric vehicles by 2030.
SER: New Player in EV Industry
Last year, His Royal Highness Prince Mohammed bin Salman, Deputy Prime Minister, launched SER. This company is the first electric vehicle (EV) brand in the Kingdom. His Highness expressed a vision for Saudi Arabia to lead in the EV sector.
SER: Joint Venture
SER is a collaboration between the Saudi Public Investment Fund and Taiwan’s Foxconn. It plans to develop, build, and sell battery-operated EVs by 2025. PIF aims to produce 150,000 EVs annually in the Gulf region.
Saudi Arabia’s Efforts in EV Industry
The Kingdom has signed multiple deals to boost the EV sector. A significant one is with the EV brand Byton. This involves an investment agreement with the Riyadh-based Faisal Holding Group. The goal is to inject substantial investments into the car manufacturing sector.
Acquiring Majority in Lucid Motors
The Public Investment Fund acquired a 65% stake in the US-based Lucid Motors. Lucid aims to expand in the Middle East, starting with its first factory outside the US in King Abdullah Economic City, Saudi Arabia. The Kingdom also agreed to purchase 100,000 Lucid cars last year. By 2030, it aims to produce 310,000 EVs annually.
Hyundai’s EV Factory in Saudi Arabia
The Public Investment Fund and South Korea’s Hyundai Motor signed an agreement last year. This is to establish an EV factory in Saudi Arabia. According to Reuters, the Korean Ministry of Industry aims to produce 50,000 electric and gas vehicles at this new facility.
Supporting EV industry
To bolster the electric vehicle Industry, Saudi Arabia signed various agreements. One notable partnership is with Electromin and ABB. Electromin is set to install 100 charging stations in the country. The government also offers free charging at various stations to encourage EV purchases.
Related Topics :
International Mining Conference: Alkhorayef Calls for Sustainable Value Chains for Critical Minerals
Boulevard World Showcases Saudi Industry Diversity: Al-Otaishan
Saudi Industrial Development Fund launches the Industry Hackathon
