Imagine a future where Saudi Arabia stands as a leader in the electric vehicle (EV) industry, not just in the Middle East, but on a global scale. This vision is becoming a reality as the Kingdom actively seeks to collaborate with Chinese mining giants to tap into the lucrative world of lithium production for EV batteries.
Saudi Arabia’s ambition doesn’t stop there. With a goal to manufacture 500,000 electric cars annually by 2030, the Kingdom is poised to transform its automotive sector. Bandar Al Khorayef, the Minister of Mineral Resources, has confirmed that the nation is exploring partnerships for processing and refining not only lithium but also copper, integral components in the EV supply chain.
The Rise of Saudi EV Manufacturing
In a significant leap forward, Saudi Arabia granted a manufacturing license to Ceer, the country’s first indigenous EV brand, and welcomed Lucid Motors to establish its first plant within its borders. Ceer, in collaboration with Foxconn and backed by the Public Investment Fund, is setting up an expansive EV complex in King Abdullah Economic City, underpinned by a $1.3 billion contract. Production is anticipated to kick off by 2025, marking a major milestone in the Kingdom’s industrial evolution.
Strategic Moves in Resource Utilization
Saudi Arabia’s strategic interest in lithium, a crucial element in battery production, is well-founded. The global supply of lithium is primarily sourced from metal-bearing rock mining and brine distillation, with the former accounting for 57% of production in 2023. By investing in these processes, Saudi Arabia aims to secure its position in the rapidly growing EV market.
The Middle East’s copper market, encompassing key players like the UAE, Turkey, and Iran, consumes about 5% of the global supply, equating to 1,200 to 1,250 kilo tonnes annually. Saudi Arabia’s involvement in copper processing and refining further solidifies its role as a pivotal player in the regional and global metal industries.
With these strategic initiatives, Saudi Arabia is not only enhancing its industrial capabilities but also positioning itself as a prime destination for investors seeking opportunities in the burgeoning EV market. The Kingdom’s commitment to innovation and sustainable growth offers a compelling invitation for global partners to join in its journey towards a greener, more prosperous future.
