Saudi Arabia, known for its vast oil production, is making significant strides in the electric vehicle (EV) market by investing heavily in building a comprehensive industry chain. This move aligns with the country's economic and social sustainability goals and aims to secure a position in the trillion-dollar EV market. As the global automotive industry shifts toward electrification, Saudi Arabia is accelerating its efforts to establish a strong presence in the global market.
Under the "Vision 2030" strategy, Saudi Arabia is investing billions to develop infrastructure, advance technology research, and localize the EV supply chain. The country has invested in U.S. EV startup Lucid Motors and launched its local brand, Ceer, to lead in the automotive industry's transformation. The Saudi government plans to electrify 30% of Riyadh's vehicles by 2030 and create a complete EV ecosystem.
Saudi Arabia is making substantial investments across the industry chain, from raw materials to vehicle manufacturing. According to Heiko Seitz from PwC, the country is building a self-sufficient automotive supply chain to solidify its position in the global EV industry.
The Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, is the largest shareholder of Lucid Motors, having invested approximately $8 billion since 2018. In 2023, Lucid Group established a manufacturing plant in Saudi Arabia's King Abdullah Economic City, with an annual production target of 155,000 electric vehicles.
In 2022, PIF and Foxconn formed a joint venture, Ceer Motors, Saudi Arabia's first local EV brand, expected to create 30,000 jobs and contribute around $8 billion to GDP by 2034. The first batch of vehicles is anticipated to launch by 2026. Saudi Arabia is leveraging its rich mineral resources to enhance the supply of materials for key components.
Saudi Arabia is also collaborating with private enterprises to build a nationwide charging network. Abdul Latif Jameel Motors is partnering with technology providers to accelerate charging infrastructure development and renewable energy projects for clean energy vehicle charging. By 2030, Saudi Arabia plans to install 5,000 fast-charging stations, managed by a company formed by PIF and the Saudi Electricity Company (SEC).
The Saudi government has introduced financial incentives and policy support to accelerate EV adoption, including a $2.67 billion incentive program for industrial projects. The integration of AI and automation in the automotive industry aims to optimize production processes and enhance digital infrastructure for smart mobility.
Saudi Arabia is transitioning from a traditional oil-based economy to a diversified one focused on renewable energy. Through substantial investments, technological collaborations, and policy support, Saudi Arabia is poised to become a significant player in the global EV market.
