After the ambitious plan of becoming a hub for EVs, Saudi is aiming to become a key hub for making batteries for electric vehicles. This is in line with the Saudi’s plan to diversify the economy and develop a domestic auto industry.
As per reports, Saudi Arabia is looking at investing in the production of EV batteries and manufacturing hydrogen-powered vehicles. It is believed that EV batteries will be a key supply chain manufacturing opportunity.
It is reported that Prince Mohammed bin Salman’s program has plans to to wean the country off hydrocarbons and focus on increasing manufacturing after scant progress in diversifying an economy.
As per reports, Saudi efforts are now also zeroing in on renewable energy and mining minerals needed to develop battery chemicals. Saudi Arabia has already set a target for producing 500,000 electric vehicles by 2030.
The kingdom is looking forward to create a wider network of suppliers around its nascent auto industry, the Saudi wealth fund has agreed on a deal with Pirelli SpA to build a more than $550 million tire plant that would serve companies including EV maker Lucid Group Inc. and Hyundai Motors Co., which are developing plants on the west coast of the country.