Saudi Arabia wants to produce more than 300 thousand cars a year by 2030. The country is attracting new investments as well as its own brands Ceer and Lucid Motors. Hyundai decided to establish a new factory within the borders of Saudi Arabia for electric vehicles and vehicles with internal combustion engines.
Korean Hyundai will produce electric vehicles in Saudi Arabia
According to the news in futureflow.life, Hyundai will establish a new automobile factory in Saudi Arabia. Thus, the South Korean company will join electric vehicle manufacturer Lucid Motors in automobile production in the oil-rich kingdom. The factory will be built in partnership with the Public Investment Fund (PIF), Arabia’s sovereign wealth fund.
A joint statement was made by PIF and Hyundai
According to this statement, it was announced that the facility will produce 50 thousand electric and internal combustion engine cars annually. The factory will be the first factory where the South Korean manufacturer produces electric vehicles in the Middle East. PIF will hold a 70 percent stake in the new joint venture. The remaining 30 percent belongs to Hyundai. It is estimated that the total investment in the project will exceed 500 million dollars.
Hyundai will also act as a strategic technology partner to support the development of the new production facility by providing technical and commercial assistance. The foundation of the facility will be laid in 2024. It will start production in 2026. It is currently unknown which models will be produced at the factory.
Hyundai will likely develop the plant in King Abdullah Economic City near Jeddah, according to Park Jiwoo, a senior manager in Hyundai’s foreign relations team.
Saudi Crown Prince Mohammed bin Salman wants to diversify the country’s oil-dependent economy. Developing the Jeddah-based domestic automobile industry is also part of this goal.
PIF also has its own electric vehicle brand called Ceer. PIF is investing internationally and domestically to secure the metals and minerals needed to develop a supply chain for the industry.