Saudi Arabia Signs Agreements to Localize EV Manufacturing

Saudi Arabia is taking significant steps to localize electric vehicle (EV) manufacturing through new agreements aimed at boosting its national industrial capabilities. The Local Content and Government Procurement Authority (LCGPA) has signed two deals with CEER National Automotive Co. to localize the production of EVs and facilitate knowledge transfer.

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By localizing engineering, manufacturing, and knowledge transfer, we are building a world-class automotive ecosystem in the Kingdom.

These agreements are part of a broader strategy to advance Saudi Arabia's local content agenda. The focus is on localizing the production of sedan and SUV EVs, with the goal of launching the first Saudi electric vehicle entirely designed, engineered, and manufactured within the Kingdom. By including these vehicles on the Mandatory List of National Products, the government aims to direct public spending towards domestic goods, supporting local manufacturers and talent.

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This will strengthen local supply chains and create opportunities for Saudi talent.

Abdulrahman Al-Samari, CEO of the LCGPA, highlighted the automotive industry's strategic importance for economic growth and its role in the Kingdom's National Industrial Strategy. He emphasized that the agreements will strengthen local supply chains, create jobs, encourage the use of local raw materials, and enhance the competitiveness of the Saudi industrial sector. Over the next decade, these deals are expected to contribute approximately $2.4 billion to Saudi Arabia's GDP and generate more than 2,600 jobs.

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The automotive industry is one of the most important strategic industries globally and plays a vital role in driving economic growth.

James DeLuca, CEO of Ceer, described the agreements as a "pivotal milestone." He stated that by localizing engineering, manufacturing, and knowledge transfer, the company is building a "world-class automotive ecosystem" in the Kingdom. Ceer aims to create around 30,000 jobs by 2034, with Saudi nationals filling 80 percent of direct positions. The company also targets a SAR 30 billion contribution to GDP and 45 percent local content in its products, supporting Saudi Arabia's industrial transformation.

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The agreements aim to localize the production of sedan and SUV EVs, as part of Ceer’s efforts to launch the first Saudi electric vehicle designed, engineered, and manufactured entirely within the Kingdom.