Ceer Signs SAR 5.5B Deals To Boost Saudi EV Industry

Ceer, the Kingdom's inaugural electric vehicle (EV) brand and Original Equipment Manufacturer (OEM), has moved further in advancing the automotive industry in the Kingdom with the signing of 11 new strategic deals valued at SAR 5.5 billion (USD 1.5 billion). These deals, signed during the 3rd PIF Public Sector Forum, will localize the local EV supply chain, with more than 80% of the transactions featuring Saudi companies. The action supports Ceer's aggressive vision for 45% localization in production, aligning with Saudi Arabia's Vision 2030 by driving diversification of the economy, creating jobs, and driving technology in the automotive sector.

Jim DeLuca, Ceer's CEO, underscored that establishing a healthy local ecosystem was crucial, observing that although the company is injecting international expertise and world-class partners into Saudi Arabia, it has a parallel vision to nurture domestic capabilities in the country. Local partnerships, he said, were not only indispensable for the expansion of the auto industry but are also essential to generating employment and fueling economic development in the Kingdom.

Ceer's recent partnerships reflect its efforts towards both international cooperation and local industry growth. Ceer has partnered with global giants like Foxconn, BMW, Siemens, RIMAC, Hyundai Transys, Sabelt, Schuler, and Dürr. Moreover, Ceer is increasing production at the King Salman Automotive Cluster, partnering with tier 1 suppliers like Lear, Forvia, Shinyoung, Benteler, JVIS, and Pirelli. Through these partnerships, Ceer ensures that it incorporates cutting-edge global technologies while also promoting domestic industrial development.

Ever since its establishment, Ceer has invested heavily in the Saudi economy, issuing SAR 6.6 billion worth of contracts to 263 Saudi companies. These local companies among others that have benefited from these contracts include Modern Building Leaders (MBL), Nahil Computer, Bupa Arabia, Atlas Industrial Equipment Co., Saudi Business Machines, and Liva Insurance. These investments promote the growth of local know-how and supply chain capabilities, cementing Saudi Arabia's position further in the global EV industry.

The new supply contracts cover a wide variety of automotive parts and manufacturing requirements, further demonstrating Ceer's dedication to production localization. From the new agreements, Zamil Central Air Conditioners Co. Ltd. will provide HVAC units, while Zamil Plastic Industrial Company will deliver plastic-injected components. Obeikan Glass Company and Abdul Latif Jameel Enterprises (ALJ) have been commissioned to produce alloy wheels, and Saudi Controls Ltd. will supply portable EV chargers. Moreover, Arabian Plastic Industrial Co. (APICO) will make blow parts, Saudi Aluminum Casting Company (SAC) will undertake aluminum casting, First Telecom Industries (FTI) will make small stampings, and CTR will localize aluminum forged parts in Saudi Arabia.

These deals not only strengthen Ceer's supply base but also work towards the larger industrialization initiative of the country, promoting transfer of technology, knowledge sharing, and enhanced manufacturing capacity in Saudi Arabia. With the inclusion of local firms within its fold, Ceer is setting the ground for a more independent and competitive automotive industry in the region.

DeLuca was optimistic about Ceer's path, commenting that the firm is at a turning point in its quest to set the Kingdom's automotive sector ablaze. He confirmed Ceer's dedication to increased partnership with partners who are vested in its vision of developing a sustainable and innovative EV ecosystem in Saudi Arabia.

Ceer's success follows Saudi Arabia's heavy investment in its car manufacturing sector as part of its Vision 2030 economic overhaul program. The Kingdom seeks to make itself a pioneer in the electric vehicle market through foreign investment, local talent promotion, and high-quality manufacturing bases. Ceer's new collaborations are a symptom of this overall national agenda, illustrating increased cohesiveness between government efforts and private enterprise invention.

While the world automotive business is moving toward sustainability and electric vehicles, Ceer's bid to create an advanced and local supply chain stands Saudi Arabia to benefit from emerging market opportunities as a competitive voice. Through utilization of both external expertise and domestic capability, the company is not only leading mobility's future within the Kingdom but also towards an environmentally friendly, more technologically advanced economy.

With these new pacts in place, Ceer will be ramping up its production plans, bringing Saudi-assembled electric cars one step closer to reality. The company's focus on collaboration, localization, and innovation will be instrumental in forging a sustainable automotive ecosystem for the region. As Ceer further expands its partnerships and investments, it will be at the forefront of driving Saudi Arabia towards becoming a center of electric vehicle manufacturing and technology innovation.