Saudi Arabia to Build Its First EV Under Joint Venture with Foxconn

Saudi Arabia’s sovereign wealth Public Investment Fund (PIF) announced on Thursday it will build electric vehicles (EVs) under a joint venture (JV) with Taiwanese electronics company Foxconn as part of an effort to diversify its economy away from oil and develop new industries. The first Saudi automotive brand, called “Ceer”, will design, manufacture and sell a range of vehicles for consumers in Saudi Arabia and the Middle East and North Africa (MENA) region, PIF said in a statement.

PIF said the first vehicles will be available in 2025, and it expects Ceer would draw more than $150 million in foreign direct investment, contributing an estimated $8 billion to the kingdom’s economy by 2034.

The JV “will license component technology from BMW for use in the vehicle development process,” PIF said in its statement.

“Foxconn will develop the electrical architecture of the vehicles, resulting in a portfolio of products that will lead in the areas of infotainment, connectivity and autonomous driving technologies,” it added.

Saudi Arabia’s investment strategy announced last year aims for more than $100 billion in FDI annually, which the kingdom still lags behind, with just over $4 billion inflows in the first half this year.

Lucid Group, which is more than 60% owned by PIF, is building an electric vehicle assembly plant in Jeddah with an eventual capacity to manufacture 150,000 vehicles a year. The Saudi government signed a deal with Lucid to buy up to 100,000 of its cars over the next 10 years.

The kingdom has also been scrambling to develop its mining industry. It said in May that it would build an EV battery metals plant.

“We will leverage Foxconn’s technological expertise to support Ceer’s vision of creating a range of iconic electric vehicles that are built around the themes of connectivity, infotainment and autonomy,” Foxconn Chairman Young said.

“We want to make electric vehicles mainstream, and that is what Ceer is going to achieve in Saudi Arabia and the wider region,” he added.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Volkswagen to Invest €180 Billion in Batteries, Raw Material Sourcing

German automaker Volkswagen is planning to invest €180 billon in battery production and raw materials sourcing over the next five years, as part of its efforts to slash electric vehicle (EV) costs and protect market share. The company on Tuesday announced its five year investment budget, two thirds of which will be earmarked to electrification and digitalization. The automaker, Europe’s biggest, has been trying to close the gap with top EV maker Tesla by increasing its slice of the growing market for battery powered cars.  

Egypt Latest Focus of EU as the Bloc Tries to Secure Energy Supply

Egyptian Prime Minister Madbouly met with EU’s climate chief Timmermans in Cairo to discuss cooperation in energy. Egyptian government said it is exploring ways to enhance energy cooperation with the European Union. 

USA Rare Earth to Ramp Up Production with Top Round Project

In a press release, Texas based USA Rare Earth said it expects to produce nearly half of critical minerals in the US Geological Survey’s (USGS) revised list. The company said it is committed to developing the Round Top heavy rare earth, lithium and critical minerals project in Hudspeth County to domestically supply the critical minerals. 

Stay informed

error: This content is protected !!