Saudi EV maker Ceer signs 16 deals to support localisation
- Move will help secure key part supplies
- Agreements total more than SAR3.7bn
- Plans to launch 7 models over next 5 years
Ceer, Saudi Arabia’s first homegrown electric vehicle manufacturer, is building its supply chain, seeking to localise 45 percent of materials and parts by 2034.
As part of the strategy, the EV producer has signed 16 commercial deals totalling more than SAR3.7 billion ($987 million), in addition to the SAR5.5 billion in agreements announced at a Public Investment Fund private-sector forum last year.
The move will help secure supplies of key components, including specialised chemical compounds and heavy steel body-shop equipment, to support Ceer’s plan to launch seven vehicle models over the next five years, the company said in a statement.
“Our approach goes beyond mere assembly; we are utilising local raw materials and empowering Saudi companies to become global suppliers, directly contributing to Vision 2030’s mission to diversify the national automotive industry and drive sustainable economic growth,” CEO James DeLuca said.
He said the move to produce heavy, labour-intensive components and local resources would help reduce carbon dioxide emissions and create job opportunities for Saudi nationals.
In February 2025, DeLuca said the company planned to roll the first vehicle off its production line in late 2026.
Further reading:
- GCC auto manufacturing waits to get out of first gear
- PIF-backed Lucid expands Saudi network
- BYD to launch new models as Saudi EV market heats up
Ceer is a joint venture between Saudi wealth fund PIF and Taiwanese contract electronics manufacturer Foxconn, with German automaker BMW as the component technology provider for vehicle development.
In June 2024 the company signed a SAR8.2 billion contract with South Korea’s Hyundai Transys for the supply of EV drive systems, which will significantly reduce size and weight while enhancing power efficiency.
In January, interim CEO Marc Winterhoff of PIF-backed US carmaker Lucid Group said full-scale vehicle manufacturing is expected to begin in Saudi Arabia this year, transitioning from assembly only at its facility near Jeddah.
California-based Lucid has been majority-owned by the sovereign fund since April 2019. PIF invested an additional $1 billion in the company in March 2024 and a further $1.5 billion in August that year, bringing its total outlay to $8 billion for a 58.4 percent stake.
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