Saudi Arabia is looking to diversify its sources of large income from oil, targeting the production of 500,000 electric vehicles (EVs) a year by 2030.
The Kingdom acquired a large stake in US-based EV manufacturing company Lucid Motors for a reported $2 billion (£1.6bn) not long ago – and this firm will be tasked with producing a quarter of this set target.
Saudi Arabia feels the EV market will be easier to enter than the petrol one, with a less established set of nations and companies at the top.
Given its riches from oil, there are reports that Saudi may look to buy into the market, as it has done with Lucid Motors – rather than building up from scratch – to establish a grip.
Ceer has been created – the first Saudi EV brand – which with help from BMW and Foxconn, is projected to make 170,000 cars each year when up and running. The first EVs set to be sold by the brand could hit roads within two years.
Managing Director for Saudi Arabia at Lucid Motors, Faisal Sultan, said: “The supply chain is going to be a main thing we’re going to go after. The supply chain doesn’t come typically for one original equipment manufacturer (OEM). That’s why it’s a government driven initiative rather than OEM driven.”