Saudi Arabia’s first electric car has taken another significant step toward production after the Local Content and Government Procurement Authority signed two agreements with Ceer, the Kingdom’s national electric vehicle manufacturer, to localize manufacturing and transfer advanced technologies and expertise to Saudi Arabia.
These agreements are part of a broader series of developments surrounding the project. They follow shortly after Ceer signed a memorandum of understanding with SABIC to explore the use of advanced materials and innovative manufacturing solutions in the design, development, and production of its electric vehicles. Together, these partnerships signal that the project is moving beyond planning and into building the industrial foundation required for large-scale production.
Accelerating Toward Production
The new agreements cover electric sedans and SUVs as part of Ceer’s strategy to design, engineer, and manufacture its vehicles entirely within Saudi Arabia.
This marks an important milestone, as the focus is no longer limited to developing the vehicles themselves. The project now encompasses building a complete domestic automotive ecosystem, including engineering capabilities, advanced materials, local supply chains, and knowledge transfer to the Saudi workforce.
Under the agreements, Ceer’s vehicles will be added to the mandatory list of national products, allowing government procurement to prioritize locally manufactured vehicles and support the expansion of domestic production as the project moves closer to its production phase.
SABIC Partnership Supports Production Readiness
The agreements follow Ceer’s recently announced collaboration with SABIC, which focuses on evaluating the use of advanced materials in the company’s vehicles while developing manufacturing solutions and processing technologies tailored for electric vehicles.
This partnership complements the latest agreements, with SABIC contributing to product development and material innovation, while the new agreements strengthen localization efforts, domestic demand, and local supply chains, bringing the project another step closer to production.
Economic Impact Exceeding SAR 9 Billion
The two agreements are expected to generate an economic impact of approximately SAR 9.213 billion (US$2.46 billion) over the next ten years while creating more than 2,600 jobs.
Abdulrahman Al-Sammari, CEO of the Local Content and Government Procurement Authority, described the automotive industry as one of the world’s most strategic sectors and a key pillar of Saudi Arabia’s National Industrial Strategy.
He added that the agreements will strengthen local supply chains, encourage the sourcing of raw materials from within Saudi Arabia, facilitate technology transfer, and enhance the competitiveness of the Kingdom’s industrial sector.
Ceer Builds a Complete Automotive Ecosystem
Ceer CEO James DeLuca described the agreements as a major milestone for both the company and the future of mobility in Saudi Arabia.
He emphasized that Ceer is focused on building a world-class automotive manufacturing ecosystem through localized engineering, manufacturing, and workforce development, rather than simply producing a car with a Saudi badge.
By 2034, Ceer aims to create approximately 30,000 jobs, including 6,500 direct and 23,500 indirect positions, with Saudi nationals filling 80% of direct roles.
The company also targets an economic contribution of around SAR 30 billion (approximately US$8.02 billion) while increasing local content in its products to 45%.
The Project Moves Closer to Production
The succession of partnerships announced by Ceer shows that Saudi Arabia’s first electric vehicle project is steadily moving closer to full-scale production as key pieces of its industrial ecosystem fall into place.
As these initiatives continue, the project is evolving beyond the goal of launching the country’s first electric vehicle toward establishing a sustainable domestic automotive industry capable of supporting future manufacturing and technological development.
