Last November, Ceer inked a US$96 million agreement with the King Abdullah Economic City to build its first manufacturing facility for electric vehicles. The facility will cover one million square meters (10.7 million square feet).

In June 2023, the Saudi Arabia’s Ministry of Industry and Mineral Resources granted an industrial licence to Ceer, the first local automotive brand to produce electric vehicles. The licence is required for Ceer to build its manufacturing facility in King Abdullah Economic City’s Industrial Valley, located on the Red Sea north of Jeddah.

The Saudi Ministry of Energy in August issued regulations for EV charging stations, essential for development of an EV-based transportation system.

While Saudi Arabia has been working on its own brand of electric vehicles, Ceer, the Kingdom also owns about 60 percent of U.S. luxury EV maker Lucid Motors, into which its Public Investment Fund recently invested US$1.8 billion.

While the Ceer factory is still in the construction stage, Lucid Motors, winner of the 2023 World Luxury Car Award, was first to open an automobile manufacturing facility in Saudi Arabia on September 27, 2023.

Lucid Group said its EV production facility will have an annual capacity of 155,000 vehicles and help create 4,500 new jobs producing Lucid’s electric vehicles for Saudi Arabia and export to other markets.

Lucid Air set a new industry benchmark for range with two versions that were the first EVs to achieve an EPA estimated range above 500 miles (800km). The company set these new standards due in part to its intense focus on range and power, delivering cars “capable of supercar levels of performance, super-fast charging, a luxurious and spacious interior, and class-leading aerodynamics,” the company said in a statement.

The Lucid facility received support from the Ministry of Investment of Saudi Arabia, the Saudi Industrial Development Fund, and King Abdullah Economic City. It is expected to play a pivotal role in accelerating Saudi Arabia’s strategic goal of diversifying its economy.

Through the development of electric transportation, Lucid will support the Saudi Green Initiative’s imperative to ensure 30 percent of new car sales in the Kingdom are electric by 2030.

“We are delighted to make history today in Saudi Arabia by opening the country’s first car manufacturing facility, which will produce our award-winning electric vehicles and support the country’s vision for a more sustainable and diversified economy,” said Peter Rawlinson, CEO and CTO, Lucid Group.

“As Saudi charges toward its Vision 2030, our facility will pave the way for the country’s electric automotive industry and the expansion of the supply chain, and with the support of the Saudi Government, we are proud to drive local talent development in the technology industry,” Rawlinson said. “We look forward to delivering Saudi-assembled cars to customers in Saudi Arabia and beyond.”

And now another American EV maker is coming to the Kingdom. Saudi Arabian general contracting company GCC Olayan has signed a deal with U.S. electric vehicle maker Canoo for the sale, service and distribution of Canoo EVs in the Kingdom. Based in Texas, Canoo is the latest EV operator to expand into Saudi Arabia, as the government seeks to diversify beyond petrol.

Finally, on October 22, 2023, Hyundai Motor Co.agreed to a deal with Saudi Arabia’s sovereign wealth fund to develop a US$500 million car assembly plant, joining electric vehicle maker Lucid Motors Inc. in producing cars in the oil-rich kingdom.

The Korean car company is expected to develop the facility at King Abdullah Economic City with a goal of producing 50,000 vehicles a year, both internal combustion engines and electric vehicles, said Park Jiwoo, a senior manager with Hyundai’s external affairs team. The plant will be a joint venture between the Public Investment Fund, which will hold a 70 percent stake in the Saudi venture, and Hyundai, which will own the rest, she said.

Yazeed A. Al-Humied, deputy governor and head of MENA Investments at PIF, said, “Partnering with Hyundai is another significant milestone for PIF in successfully enabling and accelerating the growth of Saudi Arabia’s automotive ecosystem – one of our 13 priority sectors. Our investment in vehicle manufacturing with Hyundai Motor Company is a pivotal milestone, aligning closely with our existing stakes in Lucid and Ceer Motors, and amplifying the breadth of Saudi Arabia’s automotive and mobility value chain.”