SABIC and CEER explore Saudi EV collaboration
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The MoU will evaluate SABIC’s advanced materials for future CEER electric vehicles while supporting local sourcing, technical innovation and Saudi Arabia’s growing electric vehicle supply chain.
SABIC has signed a memorandum of understanding (MoU) with CEER, Saudi Arabia’s first homegrown electric vehicle brand, to explore collaboration in the design, development and manufacturing of locally produced EVs. Signed at SABIC’s Riyadh headquarters in the presence of SABIC CEO Dr Faisal M. Alfaqeer and CEER CEO James DeLuca, the agreement will assess how SABIC’s advanced automotive materials and technical solutions can be integrated into selected CEER electric vehicle applications. It will also examine commercial opportunities and establish a framework for potential future cooperation.
Advanced EV materials and Saudi local sourcing
The agreement provides a foundation for both companies to jointly develop material and processing solutions designed for automotive industry requirements. They will also exchange expertise in sustainability, technology and innovation to support CEER’s electric vehicle development plans.
Potential strategic sourcing opportunities will be explored to help build a Saudi automotive supply chain capable of meeting international standards, alongside additional areas of collaboration identified by both organisations.
Dr Alfaqeer said the partnership combines SABIC’s global expertise in advanced EV materials with CEER’s ambition to develop Saudi-built electric vehicles. He added that the collaboration could accelerate innovation, increase local content, develop national capabilities and support Saudi Vision 2030 and the National Industrial Strategy.
DeLuca said the agreement represents another milestone in CEER’s goal of designing, engineering and manufacturing globally competitive EVs in Saudi Arabia. He added that integrating SABIC’s materials and technical expertise could improve vehicle safety, efficiency and sustainability while strengthening the Kingdom’s electric mobility ecosystem.
Supporting Saudi-made electric vehicles
SABIC has decades of experience supplying advanced automotive materials, including thermoplastics designed to support lightweight, scalable and cost-efficient EV platforms while maintaining safety and performance requirements.
In 2022, CEER and Saudi Arabia’s National Industrial Development and Logistics Program announced an initiative focused on supporting vehicle electrification through advanced thermoplastics, engineering expertise and design capabilities, with the aim of reducing environmental impact.
CEER plans to develop, manufacture and sell electric sedans and SUVs for customers in Saudi Arabia and markets across the wider region.
The company was established as a joint venture between Saudi Arabia’s Public Investment Fund and Hon Hai Precision Industry, commonly known as Foxconn. BMW contributes vehicle-development and manufacturing expertise, while Foxconn is responsible for developing the electrical architecture supporting infotainment, connectivity and autonomous-driving technologies.
CEER says every vehicle will be designed, engineered, manufactured and tested in Saudi Arabia while meeting international quality, safety and reliability standards.
The company estimates that it will contribute $8 billion directly to Saudi Arabia’s GDP, improve the country’s trade balance by $21 billion and create tens of thousands of direct and indirect employment opportunities by 2034.
The MoU does not represent a confirmed supply agreement at this stage but creates a framework to evaluate technical, commercial and sourcing opportunities. CEER says it will continue developing partnerships and advanced technologies to support a competitive, integrated and sustainable Saudi electric vehicle industry.
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