Saudi Arabia establishes firm to deploy 5,000 fast electric vehicle (EV) chargers by 2030

Saudi Arabia establishes firm to deploy 5,000 fast electric vehicle (EV) chargers by 2030

Saudi Arabia has unveiled a new electric vehicle (EV) infrastructure company in collaboration between the Public Investment Fund (PIF) and the Saudi Electricity Company (SEC). This ambitious venture's primary objective is to set up a network of 5,000 fast chargers throughout the country by the year 2030. The company is strategically planning to establish its presence in more than 1,000 locations, adhering to regulatory standards.

In this partnership, the PIF will hold a majority ownership stake of 75%, while SEC will retain the remaining 25% ownership. The establishment of this company is intended to foster cooperation with EV manufacturers, stimulate growth within the local automotive ecosystem, promote private sector involvement in the industry, support research and development localization, and encourage the production of advanced materials.

 

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Omar Al-Madhi, co-head of Mena direct investments at PIF, emphasized that this newly formed company is poised to lead Saudi Arabia's transition into the era of electric vehicles. The collaboration with SEC is expected to create synergies across the entire EV supply chain, spur economic development, and position Saudi Arabia as a key player in the electrified automotive industry.

The global electric vehicle industry is currently experiencing significant expansion, driven by the worldwide shift toward sustainable transportation. Projections from Fortune Business Insights suggest that the market will grow to an estimated $1.6 trillion by 2030, up from approximately $500 billion in 2023.

As part of its Vision 2030 strategy aimed at economic diversification and reducing reliance on oil, Saudi Arabia, the largest economy in the Arab world, is concentrating on the development of its domestic EV market and the growth of its local manufacturing sector. In November 2022, the PIF introduced Ceer, Saudi Arabia's inaugural electric vehicle brand, with the goal of attracting foreign direct investment and generating employment opportunities.

 

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Luxury EV manufacturer Lucid Group, which enjoys PIF backing, has also recently inaugurated its first international manufacturing facility in Saudi Arabia, with plans to produce 155,000 electric vehicles annually.

The launch of this new EV infrastructure company aligns perfectly with PIF's strategy to bolster Saudi Arabia's automotive capabilities and establish the nation as a global leader. Since 2017, PIF has played a pivotal role in advancing the kingdom's diversification efforts by establishing 89 companies and concentrating on 13 strategic sectors.

Source: https://www.motormoutharabia.com/