The kingdom’s Public Investment Fund (PIF) tapped the Saudi Electricity Company (SEC) to support the electric vehicle shift by delivering a reliable charging network.
The announcement revealed that the partnership will see the formation of a new charging infrastructure company in the country, Reuters reports.
Partnership details
PIF will have the majority stake in the company at 75%. Meanwhile, the SEC will control the other 25%, per the wealth fund.
Under the agreement, the two parties will develop and deploy the most advanced EV fast-charging stations throughout the country.
Specifically, they will erect 1,000+ charging stations with 5,000+ fast chargers by the end of this decade. They plan to deploy these chargers in cities and roads that link them.
Objectives
PIF and SEC aim to strengthen the local EV ecosystem amid the shift to e-mobility. Through this significant partnership, the two parties look to encourage private sector participation in EV charging network projects.
“SEC, as part of the nation’s wider energy ecosystem, develops and implements strategies that aim to enhance Saudi Arabia’s position as a sustainable energy leader, in line with the Kingdom’s efforts to promote advanced energy solutions and increase the value added by the energy sector.”
SEC CEO Khalid bin Hamad Al-Gnoon
Moreover, they aim to boost the country’s R&D and advanced material production to establish a strong presence in the global EV industry.
Most especially, they aim to aid EV drivers and future owners by providing them with the necessary infrastructure they need for battery replenishment.
“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. 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.”
PIF’s MENA Direct Investments co-Head, Omar Al-Madhi
Lucid launches its local factory
American electric automaker Lucid recently launched its first EV production plant in Saudi Arabia, owing to the significant support of the government.
The new facility is in King Abdullah Economic City (KAEC). It will manage the local production of the Lucid Air luxury electric car. It is expected to initially hit an annual production capacity of 5,000 units and eventually ramp up to 155,000 units in the latter phase.
The PIF-SEC partnership for EV charging infrastructure development will undoubtedly aid the kingdom’s efforts to promote the EV transition and establish a global presence in the flourishing industry. It will also boost the country’s non-oil GDP and offer new job opportunities for local citizens.
