Saudi Arabia’s PIF, SEC set up EV infrastructure company

Image courtesy: Karol Serewis/ Getty Images

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF) and Saudi Electricity Company (SEC) have launched a company that will build and operate electric vehicle (EV) infrastructure across Saudi Arabia.

The new company, Electric Vehicle Infrastructure Company, seeks to establish a presence in more than 1,000 locations and install more than 5,000 fast chargers by 2030 in cities across the country and on the roads that connect them.

“The company aims to deliver best-in-class EV fast-charging infrastructure across Saudi Arabia, further unlocking the local automotive ecosystem and accelerating the adoption of electric cars,” PIF said in a statement.

The wealth fund will hold a 75 per cent shareholding in the company, while the SEC will own the remaining 25 per cent stake.

“The Electric Vehicle Infrastructure Company will spearhead the EV transition by deploying best-in-class, widely available EV charging infrastructure to drive the growth of the EV ecosystem,” said Omar Al-Madhi, co-head of MENA Direct Investments at PIF.

“Through our partnership with SEC, we will be able to accelerate the creation of synergies across the EV supply chain, driving economic growth and diversification in line with Vision 2030, and positioning Saudi Arabia as a leader in the new electrified era of the automotive industry.”

The company aims to advance the kingdom’s automotive ecosystem, through collaboration with EV companies, by supplying the necessary charging stations to meet future demand.

It also aims to promote private sector participation in the development of its network of charging stations and support the localisation of R&D and manufacturing of technologically advanced materials, ultimately building domestic expertise and resilience.

PIF accelerates Saudi’s EV ambitions

Meanwhile, the founding of the company follows the inauguration of electric carmaker Lucid Group’s production facility in Jeddah – the first-ever car manufacturing facility in Saudi Arabia.

The facility, which is the automaker’s second Advanced Manufacturing Plant (AMP-2) and first international plant, will produce EVs for Saudi Arabia and export to other markets.

The AMP-2 facility, located in King Abdullah Economic City (KAEC), will assemble the luxury electric sedan Lucid Air, with an initial capacity to produce 5,000 units a year. It will be scaled up to complete build-unit production after the middle of the decade, with an additional annual capacity of 150,000 cars.

Lucid is expected to play a pivotal role in accelerating the kingdom’s economic diversification strategy while supporting the Saudi Green Initiative’s imperative to ensure that 30 per cent of new car sales in the country are electric by 2030.

PIF, which owns just over 60 per cent of Lucid, agreed to invest $1.8bn in May as part of the luxury EV maker’s private stock offering. Saudi Arabia unveiled its electric car brand, Ceer, in November 2022.

Ceer, a joint venture between PIF and Taiwan’s Foxconn, will design, manufacture and sell a range of vehicles, including sedans and sports utility vehicles, for consumers in Saudi Arabia and the MENA region.

Read: Lucid opens Saudi Arabia’s first car production facility