RIYADH: Saudi Basic Industries Corp. has signed a memorandum of understanding with Public Investment Fund-backed electric vehicle manufacturer Ceer to explore collaboration on advanced materials and innovative solutions for the design, development and production of EVs.
The agreement will assess opportunities to integrate SABIC’s advanced materials and specialty solutions into Ceer’s vehicles while evaluating potential commercial partnerships and establishing a framework for future collaboration, according to a statement.
The partnership comes as Saudi Arabia accelerates efforts to establish a domestic EV industry under Vision 2030. Ceer, launched by PIF and Foxconn in 2022, is expected to contribute SR30 billion ($7.9 billion) to the Kingdom’s gross domestic product by 2034 and create up to 30,000 direct and indirect jobs, according to official figures.
The deal also supports Ceer’s efforts to expand its domestic supplier network as it prepares to manufacture electric vehicles in the Kingdom. Earlier this year, the company signed 16 agreements worth more than SR3.7 billion, targeting 45 percent Saudi localization by 2034 and strengthening the Kingdom’s automotive supply chain.
Shared commitment to Vision 2030
Faisal Al-Faqeer, SABIC CEO and executive board member, said: “The memorandum represents a strategic collaboration which leverages SABIC’s global expertise in advanced material solutions for the electric vehicle industry. Through this partnership, we aim to accelerate innovation, enhance local content and build an integrated national supply chain that enhances global competitiveness.
“This collaboration also reflects our shared commitment to contribute to Saudi Vision 2030 and the National Industrial Strategy, empowering national talent, and strengthening Saudi Arabia’s position as a regional hub for future industries and technologies.”
Ceer CEO James DeLuca said the agreement marks a significant step in the company’s journey toward designing, engineering and manufacturing a “world-class electric vehicle” in Saudi Arabia.
He added: “By integrating SABIC’s materials and deep technical expertise into our vehicles, we are building a robust and reliable local supply chain while enhancing Ceer’s role as a key player in the Kingdom’s transformation into a sustainable advanced hub for mobility and technology, in alignment with the goals of Saudi Vision 2030.”
Advanced materials collaboration
The MoU establishes a framework to evaluate the use of SABI’s advanced materials in selected Ceer vehicle applications and explore the joint development of material and manufacturing solutions.
It also covers cooperation on sustainability, technology and potential sourcing opportunities to support the development of a local EV supply chain, while identifying additional areas for future collaboration.
