Saudi Basic Industries Corp. has signed a memorandum of understanding with Ceer, the Public Investment Fund-backed electric vehicle maker, to examine how its advanced materials could be used in the design and production of electric vehicles, according to statements from the companies.
The agreement is intended to assess commercial opportunities, identify potential applications for SABIC’s speciality materials in Ceer vehicles and set out a wider framework for future cooperati...
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on. It also covers possible joint work on manufacturing solutions, sustainability and sourcing, as Ceer builds out a domestic supply chain ahead of local vehicle production.
The partnership comes as Saudi Arabia steps up efforts to develop a home-grown EV sector under Vision 2030. Ceer, launched in 2022 as a joint venture between PIF and Foxconn, has been presented by Saudi officials as a pillar of the Kingdom’s industrial diversification drive. Official estimates suggest the company could add SR30 billion, or $7.9 billion, to gross domestic product by 2034 and create as many as 30,000 direct and indirect jobs.
Ceer has also been widening its supplier base. Earlier this year, it signed 16 agreements worth more than SR3.7 billion, with a stated aim of reaching 45% Saudi localisation by 2034 and strengthening the country’s automotive ecosystem. The company has said it wants to begin manufacturing its first models in Saudi Arabia and has positioned itself as the Kingdom’s first home-grown electric vehicle brand.
Faisal Al-Faqeer, SABIC’s chief executive and executive board member, said the memorandum would combine the chemicals group’s experience in advanced materials with Ceer’s ambitions in electric mobility. He said the collaboration was designed to speed up innovation, increase local content and help build a more integrated national supply chain.
Ceer chief executive James DeLuca said the deal marked another step towards designing and manufacturing a “world-class electric vehicle” in Saudi Arabia. He said incorporating SABIC’s materials and technical know-how would support the creation of a stronger local supply network and reinforce Ceer’s role in the Kingdom’s shift towards sustainable mobility and technology.
For Saudi Arabia, the agreement is another sign that its push into advanced manufacturing is beginning to gather pace, with industrial policy, foreign technology partnerships and localisation targets all being drawn together around the wider economic agenda.
Source: Noah Wire Services
