CEER, Saudi Arabia’s first electric vehicle (EV) brand and original equipment manufacturer (OEM), has significantly bolstered its domestic supply chain by signing 16 new commercial agreements valued at over SAR 3.7 billion ($987 million). The announcement was made at the 4th PIF Private Sector Forum, building upon the SAR 5.5 billion in agreements revealed at last year’s event.
Deepening Localisation Efforts
This latest wave of partnerships is a critical step in CEER’s ambitious localisation strategy, which aims to source 45% of its vehicle materials and components from Saudi-based companies by the year 2034. These agreements are designed to establish a robust and reliable local supply chain to support the company’s planned rollout of seven different EV models over the next five years.
The collaborations ensure that essential components, from advanced chemical compounds to heavy-duty steel Body Shop equipment, will be manufactured or sourced within the Kingdom. This move is set to secure long-term business for the local market and foster a sustainable, high-tech industrial base in Saudi Arabia.
Forging Strategic Partnerships
The newly signed commercial contracts involve a diverse range of local and international suppliers establishing a presence in the Kingdom. Key partners include Abdul Latif Jameel (ALJ) for windshield washer fluid and EV coolants, Zamil Trade & Services for brake fluids, FPI for front-end modules, and Sika for chemical components like structural adhesives.
Further agreements were made with XYG for automotive glazing solutions, Mino for the delivery and installation of steel body shop infrastructure, and specialized engineering services from FEV and AVL. CEER also solidified new Memorandums of Understanding (MoUs) with entities like KK Nag and AITS to localize the supply of components such as window regulators and door hinges.
Driving Vision 2030 Goals
CEER’s strategy directly aligns with the economic diversification and industrial growth objectives outlined in Saudi Arabia’s Vision 2030. By empowering local companies and raw materials, the company aims to position Saudi suppliers competitively on a global scale.
“These agreements are a cornerstone of CEER’s wide and deep localization strategy,” said James DeLuca, CEO of CEER. “Our approach goes beyond mere assembly; we are utilizing local raw materials and empowering Saudi companies to become global suppliers, directly contributing to Vision 2030’s mission to diversify the national automotive industry and drive sustainable economic growth.”
DeLuca added that the contracts are vital for building a comprehensive automotive ecosystem, reducing CO2 emissions, and creating meaningful job opportunities for Saudi nationals. By 2034, CEER is projected to contribute over SAR 30 billion to the Kingdom’s GDP and help create approximately 30,000 direct and indirect jobs.
About CEER
CEER is the first Saudi automotive brand to produce electric vehicles in Saudi Arabia. A joint venture between Saudi Arabia’s Public Investment Fund (PIF) and Hon Hai Precision Industry Co. (Foxconn), CEER is focused on designing, manufacturing, and selling a range of electric vehicles for consumers in the MENA region, including sedans and sports utility vehicles.
Source: Zawya
