The Kingdom of Saudi Arabia Royal Highness Crown Prince Mohammad bin Salman bin Abdulaziz, the Prime Minister and Chairman of the Public Investment Fund (PIF), recently announced the launch of Ceer, the first Saudi electric vehicle (EV) brand. The launch comes in line with PIF’s strategy to focus on unlocking the capabilities of promising local sectors that can help drive the diversification of the economy to help achieve the objectives of “Vision 2030.” In addition, the company will contribute to Saudi Arabia’s efforts towards carbon emissions reduction and driving sustainability to address the impact of climate change.
“Saudi Arabia is not just building a new automotive brand, we are igniting a new industry and an ecosystem that attracts international and local investments, creates job opportunities for local talent, enables the private sector, and contributes to increasing Saudi Arabia’s GDP over the next decade, as part of PIF’s strategy to drive the economic growth in line with Vision 2030,” said the Crown Prince.
Ceer is the first Saudi automotive brand to produce EVs in Saudi Arabia. It will design, manufacture and sell a range of vehicles for consumers in Saudi Arabia and the MENA (Middle East/North Africa) region, including sedans and SUVs. As part of PIF’s strategy to diversify Saudi Arabia’s GDP growth by investing in promising growth industries, the EV company will attract over $150 million in foreign direct investment and create up to 30,000 direct and indirect jobs. Ceer is projected to directly contribute $8 billion to Saudi Arabia’s GDP by 2034.
The company, a joint venture between PIF and Hon Hai Precision Industry Co (Foxconn), will license component technology from BMW for use in the vehicle development process. Foxconn will develop the electrical architecture of the vehicles, resulting in a portfolio of products that will lead to infotainment, connectivity, and autonomous driving technologies. Each car will be designed and manufactured in Saudi Arabia and tested to the highest global automotive quality control and safety standards.
“Foxconn is excited about our partnership with PIF to create a new automotive company that will focus on designing and manufacturing EVs in and for Saudi Arabia. We will leverage Foxconn’s technological expertise to support Ceer’s vision of creating a range of iconic EVs built around connectivity, infotainment, and autonomy. We want to make EVs mainstream, and that is what Ceer will achieve in Saudi Arabia and the wider region,” said Young Liu, chair of the Hon Hai Technology Group.
Assembly facility at KAEC
Ceer has also recently signed a land purchase agreement worth 359 million Saudi Riyals ($96 million) with Emaar, the Economic City, for land at King Abdullah Economic City (KAEC). It will be used to develop Ceer’s EV manufacturing facility. The site, covering over 100 hectares, is located in the Industrial Valley near King Abdullah Port in KAEC. Once completed, Ceer’s manufacturing facility will create thousands of direct and indirect high-skilled jobs, most of which will be filled by Saudi nationals. Construction at the site will begin in early 2023, and Ceer EVs are scheduled to be available by 2025. The factory will be state-of-the-art, featuring the latest technologies to ensure manufacturing efficiency while minimizing energy and water usage. The EV company will work towards making the factory a zero-waste-to-landfill site.
“We have found a place that meets all our needs. KAEC offers a great location with world-class logistics, effective access for our global and Saudi-based suppliers, and an ideal location to base and develop our future workforce. KAEC will become our manufacturing hub as we work towards creating the first EV brand for Saudi Arabia and the wider region and, in doing so, contribute in a meaningful way to Saudi Vision 2030,” said Ceer CEO James DeLuca.
“We are delighted to welcome Ceer to KAEC and to help make history by building the first automotive manufacturing hub in Saudi Arabia and the wider region,” said Cyril Piaia, CEO of Emaar, The Economic City, the master developer of KAEC. “KAEC is aiming at integrating into Vision 2030 initiatives with the vision to be a global manufacturing center, and we are spearheading the creation of an EV automotive industry that will be both innovation-focused and have sustainability at its heart. We cannot wait to see the cars of the first Saudi EV brand coming out of Ceer’s factory at KAEC in a couple of years, and we are proud to be able to contribute to a project that supports so many facets of Saudi Vision 2030. This agreement is in line with KAEC’s new strategy to welcome third-party anchor investors, developers, and operators to realize their projects and ambitions in the city and accelerate its development.” (Story and photo courtesy of Ceer Motors)