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Arab News
4 days ago
- Automotive
- Arab News
Battery cost drops and govt drive help Kingdom achieve EV goals
RIYADH: A rapid decline in battery prices and critical mineral costs, along with effective government initiatives, are expected to help Saudi Arabia achieve its goal of electrifying 30 percent of vehicles in Riyadh by 2030, according to experts. Speaking to Arab News, Joseph Salem, partner and travel, transportation and hospitality practice lead at Arthur D. Little, Middle East, said that the Kingdom needs to deploy at least 1.5 million electric vehicles by 2030 to meet this stipulated target. Known for its oil wealth, Saudi Arabia has been leading the region's energy transition and is now focused on developing a comprehensive EV ecosystem. As a part of this strategy, the nation has invested in US-based EV manufacturer Lucid through the Kingdom's sovereign wealth fund, as well as creating its homegrown electric vehicle brand Ceer, which is expected to roll out vehicles by 2026. 'Battery cost reduction serves as a key enabler for Saudi Arabia to achieve its EV adoption targets and build a competitive regional automotive industry, reinforced by the broader global trend of declining battery prices. It will also be driven by both the government's push and pull from the market,' said Salem. He added: 'Saudi Arabia's $9 billion investment across the EV value chain, with Ceer launching vehicles by 2026 and a partnership with Lucid Motors to produce 155,000 EVs per year, underscores its commitment to becoming a regional EV manufacturing hub, reducing production costs and enhancing affordable EV availability.' The Kingdom is also expanding its EV infrastructure, aiming to have 5,000 fast chargers nationwide by 2030, making adoption more practical for consumers. The crucial cost factor In March, a report released by the International Energy Agency said that the global battery market is advancing rapidly as demand rises sharply and prices continue to decline. The IEA further stated that electric car sales increased by 25 percent year on year in 2024 to reach 17 million, while the average price of a battery pack for an electric car dropped below $100 per kilowatt-hour, a key threshold for competing on cost with conventional models. 'The ongoing reduction in EV battery costs is already making certain electric vehicle segments cost-competitive with internal combustion engines,' said Christopher Decker, partner, energy and natural resources at Oliver Wyman – India, Middle East and Africa. He added: 'This growing affordability will help lay the foundation for EV infrastructure in Saudi Arabia, which is essential for scaling up and ultimately decarbonizing the broader light-vehicle fleet.' Battery cost reduction serves as a key enabler for Saudi Arabia to achieve its EV adoption targets. Joseph Salem, partner and travel, transportation and hospitality practice lead at Arthur D. Little, Middle East Paul Sullivan, an energy and environment expert at Johns Hopkins University in Maryland, US, said that the Kingdom could advance its technical capabilities to make EVs more popular and affordable. 'Saudi Arabia lives in its own auto market but also the world auto market. It must adjust to both. But it has the benefit of large cash flows and stocks to invest in new technologies and industries,' said Sullivan. Citing a Goldman Sachs study, Arthur D. Little's Salem said that battery costs fell by over 85 percent in lithium pricing from 2022 to 2024, reducing global EV costs and helping automakers close the price gap with ICE vehicles. Hel added that battery pack prices are expected to drop nearly 50 percent by 2026, making EVs' total cost of ownership comparable to ICE vehicles in select major markets, including Saudi Arabia. 'With battery prices projected to reach $80 per kWh by 2026, EVs are becoming more affordable, making them increasingly attractive to Saudi consumers, where price is a key factor for a sizeable section of the customer base,' added Salem. Advancing innovation Experts who spoke to Arab News also praised recent innovations in Saudi Arabia, including a new lithium extraction technique developed by King Abdullah University of Science and Technology. In January, researchers at KAUST presented their innovative technology in a study published in the Journal of Science, which describes a method for direct lithium extraction from brine in oilfields and seawater. Lithium, a critical mineral for batteries, is present in these sources at very low concentrations, making it difficult to extract in useful quantities. However, this new technology makes this otherwise inaccessible element extractable on an industrial scale. The technology was demonstrated on a pilot test 100,000 times larger than that of a university laboratory, and its cost was competitive relative to standard lithium mining extraction techniques. 'KAUST's new lithium-extraction technique could reduce costs for Saudi as well as other battery makers. This last bit will happen when this lithium extracting technology spreads outside of Saudi Arabia or other similar methods are used across the world,' said Johns Hopkins University's Sullivan. He added: 'The lithium and battery industries are looking for ways to cut costs. This will drive more invention and research. Things can move quickly. A company and a country cannot rest on its victories in a quickly changing and uncertain world. This invention must be exploited quickly before it becomes obsolete by other inventions.' Decker said that KAUST's development of the new lithium extraction technique is a promising step toward integrating Saudi Arabia's mining sector into the global lithium value chain. Salem praised KAUST's innovative efforts, noting that the breakthrough could extract up to 10,000 times more lithium from oilfield brine and seawater. This would reduce reliance on global markets and help secure a stable, cost-effective supply for domestic battery production and EV manufacturing. The Arthur D. Little official further added that this new technology could open up potential lithium export opportunities and position the Kingdom as a global hub for critical battery materials, driving economic diversification. 'This innovation aligns with Saudi Arabia's industrial strategy to localize the entire battery value chain — from critical minerals to EVs — and to build a new high-tech export sector,' said Salem. Geographical shifts According to the IEA, China produces over three-quarters of all batteries sold globally. The energy think tank added that batteries in China were reported to be priced lower than in Europe and North America by over 30 percent and 20 percent, respectively. Declining battery prices in recent years are a major reason why many EVs in China are now cheaper than their conventional counterparts. However, Sullivan said that this Chinese dominance in the battery industry will not last forever, as other regions are also embracing methods to effectively manufacture batteries in a cost-effective manner. 'China may dominate for some time, but it will likely not have such a large share of the overall battery market forever. The US and the EU are putting significant efforts into developing their battery industries. For example, India may be a battery giant in the future. Japan and South Korea also want to build greater battery industries and markets,' said Sullivan. He added: 'Every industry must deal with and respond to threats of substitution, supplier power, buyer power, and threats of new entry. Saudi Arabia could play these five forces for success in the future. Economics and business do not stand still for long.' Salem said that the Kingdom's lithium extraction technology, if combined with the right ecosystem, could offer a chance to reduce reliance on China for selected components and materials, strengthening local supply chains. 'China's policy shift is a wake-up call — it exposes global vulnerabilities but also creates a window for Saudi Arabia to assert strategic autonomy and emerge as a regional battery and EV manufacturing hub,' said Salem. In early 2025, China's Ministry of Commerce proposed new export restrictions targeting critical battery technologies, including lithium extraction and cathode material production. These measures would require government approval for technology exports and thus have intensified global concern over dependence risks. Commenting on China's dominance in the battery market, Decker noted that heavy geographic concentration in any critical supply chain raises concerns about resilience and long-term sustainability. 'Localization and diversification are becoming strategic priorities for many countries looking to build more independent and secure clean energy ecosystems. China will continue to play a central role in the battery industry, given its dominance in both processing capacity and control over key raw materials,' said Decker. He added: 'Collaboration, innovation, and transparent supply chain practices will be crucial to ensure global progress in the energy transition.'
Mid East Info
27-05-2025
- Automotive
- Mid East Info
Largest edition of Automechanika Riyadh underscores the Middle East's position as a global automotive hub - Middle East Business News and Information
Captured by Lights In Motion Automechanika Riyadh 2025 saw record attendance, achieving 35% year-on-year growth The event hosted over 450 exhibitors from more than 30 countries, with China, Taiwan, Hong Kong, KSA, and the UAE accounting for the top five exhibiting nations The event's knowledge-sharing platform, Automechanika Academy, gathered thought leaders from around the region while the latest industry innovations were presented across the show floor Riyadh, KSA: Automechanika Riyadh 2025, Saudi Arabia's leading trade show for the automotive aftermarket industry, concluded last month at the Riyadh International Convention and Exhibition Centre (RICEC) with a 35% year-on-year increase in attendance. The event showcased over 450 exhibitors from more than 30 countries and highlighted the Middle East's position as a global hub for the automotive industry. The domestic market represented 90% of visitors, with international markets accounting for 10% of attendees. As Saudi Arabia accelerates progress under Vision 2030, major projects such as Lucid Motors' new plant in King Abdullah Economic City (KAEC) and the launch of Ceer, Saudi's first electric vehicle brand, reflect the Kingdom's commitment to localising the automotive value chain. The wider MENA region is also contributing significantly, with Morocco targeting an annual production of one million vehicles by 2025 and the UAE strengthening its role in aftermarket services and re-exports. In his keynote address at Automechanika Riyadh, Dr Faisal Al-Kadi, CEO of Al Kadi Commerce & Industry, underscored the importance of fostering strong local and international partnerships to drive sustainable growth. This was echoed in a high-level panel discussion on 'Building the Middle East's automotive hub', which examined supply chain development, certification frameworks and the role of collaboration across sectors in supporting the region's transformation. During the event, industry voices, including Ben Stewart, Supply Chain Director, Lucid MENA and Aftab Ahmed, Chief Advisor, National Industrial Development Centre, highlighted the critical need for government and private sector cooperation to create a robust, standardised, sustainable supply chain ecosystem. Discussions highlighted the importance of certification, localisation and long-term industrial planning as key pillars for establishing trust and competitiveness in the regional market. Bilal Al Barmawi, CEO and Founder of 1st Arabia, licensee of Automechanika Riyadh, directed by Messe Frankfurt Exhibition GmbH, commented: 'Automechanika Riyadh 2025 was our largest and most successful edition to date from a visitor and exhibitor perspective, reflecting the impressive growth of the automotive aftermarket sector region-wide. The exhibitor showcase at Automechanika Riyadh 2025 increased by 34%, with the top five participating countries being China, Taiwan, Hong Kong, KSA, and UAE.' To accommodate the growing interest in Automechanika Riyadh, the exhibition space expanded by over 70%, covering 19,270 square metres across five halls. In addition, the event featured seven international pavilions that presented the latest industry solutions from Singapore, Taiwan, South Korea, China, Hong Kong, Turkey, and Thailand. Automechanika Riyadh also featured Automechanika Lovers, a programme that offers marketing benefits and services to exhibitors at all Automechanika shows worldwide. Valid until 30 September 2026, the programme supports companies in enhancing their presence at Automechanika events and includes Gold, Silver or Blue status for participants. Aly Hefny, Show Manager, Automechanika Riyadh, Messe Frankfurt Middle East, said: 'We would like to extend special thanks to the companies that participated in the Automechanika Lovers programme at Automechanika Riyadh, who undoubtedly made a significant contribution to the event's success. The programme offers many benefits, enhancing exposure for exhibitors before, during and after the event.' This year, the programme featured companies with Gold status, including Add Industry (Zhejiang) Corporation Limited, C.E.I. Costruzione Emiliana Ingranaggi S.p.A, GSP Automotive Group, WENZHOU CO. LTD, REINZ-Dichtungs-GmbH, and Sampa Otomotiv Sanayi Ve Ticaret Anonim Sirket. Automechanika Riyadh will return in 2026, where it is expected to build on this year's edition, welcoming more exhibitors and visitors. The product areas showcased at Automechanika Riyadh include Parts & Components, Electronics & Systems, Connectivity & Autonomous Driving, Accessories & Customising, Tires & Batteries, Car Wash & Care, Oils, Lubricants, & Fuels, Diagnostics & Repairs, Body & Paint, Digital Solutions & Services. About Automechanika Riyadh: Automechanika Riyadh, licensed by Messe Frankfurt GmbH, will take place from 28 April – 30 April 2025 at Riyadh International Convention and Exhibition Centre. This will be the 7th edition of Automechanika in Saudi Arabia, which is the leading exhibition dedicated to the automotive aftermarket industry in the Kingdom. The dedicated exhibition is one of 14 instalments of Automechanika – the most successful and largest automotive aftermarket exhibition brand in the world. About 1st Arabia: 1st Arabia Tradeshows & Conferences is a leading exhibition & conference organizer in the Kingdom of Saudi Arabia. Headquartered in Riyadh, 1st Arabia has regional offices in Jordan and is set to expand its operations in more countries regionally. 1st Arabia organizes top international trade exhibitions and conferences that provide unparalleled networking and business opportunities for companies looking to excel and grow within the Kingdom. Apart from conducting quality and high profile B2B trade fairs, country specific shows, corporate events, conferences, events management and festivals, 1st Arabia also provides a complete marketing tool and exhibition solutions to their valued clients. 1st Arabia is the only MICE organization in the Kingdom of Saudi Arabia who is a member of the International Organizations like IAEE, ICCA, MPI PCMA, SISO and, UFI.
Zawya
27-05-2025
- Automotive
- Zawya
Largest edition of Automechanika Riyadh underscores the Middle East's position as a global automotive hub
The event hosted over 450 exhibitors from more than 30 countries, with China, Taiwan, Hong Kong, KSA, and the UAE accounting for the top five exhibiting nations The event's knowledge-sharing platform, Automechanika Academy, gathered thought leaders from around the region while the latest industry innovations were presented across the show floor Riyadh, KSA: Automechanika Riyadh 2025, Saudi Arabia's leading trade show for the automotive aftermarket industry, concluded last month at the Riyadh International Convention and Exhibition Centre (RICEC) with a 35% year-on-year increase in attendance. The event showcased over 450 exhibitors from more than 30 countries and highlighted the Middle East's position as a global hub for the automotive industry. The domestic market represented 90% of visitors, with international markets accounting for 10% of attendees. As Saudi Arabia accelerates progress under Vision 2030, major projects such as Lucid Motors' new plant in King Abdullah Economic City (KAEC) and the launch of Ceer, Saudi's first electric vehicle brand, reflect the Kingdom's commitment to localising the automotive value chain. The wider MENA region is also contributing significantly, with Morocco targeting an annual production of one million vehicles by 2025 and the UAE strengthening its role in aftermarket services and re-exports. In his keynote address at Automechanika Riyadh, Dr Faisal Al-Kadi, CEO of Al Kadi Commerce & Industry, underscored the importance of fostering strong local and international partnerships to drive sustainable growth. This was echoed in a high-level panel discussion on 'Building the Middle East's automotive hub', which examined supply chain development, certification frameworks and the role of collaboration across sectors in supporting the region's transformation. During the event, industry voices, including Ben Stewart, Supply Chain Director, Lucid MENA and Aftab Ahmed, Chief Advisor, National Industrial Development Centre, highlighted the critical need for government and private sector cooperation to create a robust, standardised, sustainable supply chain ecosystem. Discussions highlighted the importance of certification, localisation and long-term industrial planning as key pillars for establishing trust and competitiveness in the regional market. Bilal Al Barmawi, CEO and Founder of 1st Arabia, licensee of Automechanika Riyadh, directed by Messe Frankfurt Exhibition GmbH, commented: 'Automechanika Riyadh 2025 was our largest and most successful edition to date from a visitor and exhibitor perspective, reflecting the impressive growth of the automotive aftermarket sector region-wide. The exhibitor showcase at Automechanika Riyadh 2025 increased by 34%, with the top five participating countries being China, Taiwan, Hong Kong, KSA, and UAE.' To accommodate the growing interest in Automechanika Riyadh, the exhibition space expanded by over 70%, covering 19,270 square metres across five halls. In addition, the event featured seven international pavilions that presented the latest industry solutions from Singapore, Taiwan, South Korea, China, Hong Kong, Turkey, and Thailand. Automechanika Riyadh also featured Automechanika Lovers, a programme that offers marketing benefits and services to exhibitors at all Automechanika shows worldwide. Valid until 30 September 2026, the programme supports companies in enhancing their presence at Automechanika events and includes Gold, Silver or Blue status for participants. Aly Hefny, Show Manager, Automechanika Riyadh, Messe Frankfurt Middle East, said: 'We would like to extend special thanks to the companies that participated in the Automechanika Lovers programme at Automechanika Riyadh, who undoubtedly made a significant contribution to the event's success. The programme offers many benefits, enhancing exposure for exhibitors before, during and after the event.' This year, the programme featured companies with Gold status, including Add Industry (Zhejiang) Corporation Limited, C.E.I. Costruzione Emiliana Ingranaggi S.p.A, GSP Automotive Group, WENZHOU CO. LTD, REINZ-Dichtungs-GmbH, and Sampa Otomotiv Sanayi Ve Ticaret Anonim Sirket. Automechanika Riyadh will return in 2026, where it is expected to build on this year's edition, welcoming more exhibitors and visitors. The product areas showcased at Automechanika Riyadh include Parts & Components, Electronics & Systems, Connectivity & Autonomous Driving, Accessories & Customising, Tires & Batteries, Car Wash & Care, Oils, Lubricants, & Fuels, Diagnostics & Repairs, Body & Paint, Digital Solutions & Services. About Automechanika Riyadh Automechanika Riyadh, licensed by Messe Frankfurt GmbH, will take place from 28 April – 30 April 2025 at Riyadh International Convention and Exhibition Centre. This will be the 7th edition of Automechanika in Saudi Arabia, which is the leading exhibition dedicated to the automotive aftermarket industry in the Kingdom. The dedicated exhibition is one of 14 instalments of Automechanika – the most successful and largest automotive aftermarket exhibition brand in the world. About 1st Arabia 1st Arabia Tradeshows & Conferences is a leading exhibition & conference organizer in the Kingdom of Saudi Arabia. Headquartered in Riyadh, 1st Arabia has regional offices in Jordan and is set to expand its operations in more countries regionally. 1st Arabia organizes top international trade exhibitions and conferences that provide unparalleled networking and business opportunities for companies looking to excel and grow within the Kingdom. Apart from conducting quality and high profile B2B trade fairs, country specific shows, corporate events, conferences, events management and festivals, 1st Arabia also provides a complete marketing tool and exhibition solutions to their valued clients. 1st Arabia is the only MICE organization in the Kingdom of Saudi Arabia who is a member of the International Organizations like IAEE, ICCA, MPI PCMA, SISO and, UFI.
Auto Car
19-05-2025
- Automotive
- Auto Car
Hyundai to build future cars in Saudi Arabia
Close Hyundai has started construction work on a new factory in Saudi Arabia that is set to supply the state with some 50,000 cars annually. It is based in the King Salman Automotive Cluster, a new automotive industry hub in the King Abdullah Economic City near Jeddah. As well as Hyundai, it currently hosts Lucid Motors (for whom the Saudi government is a key financial backer) and Saudi brand Ceer. It will produce both internal-combustion-engine and battery-electric vehicles according to local demand, and will build its first vehicle by October 2026.
Arab News
14-05-2025
- Automotive
- Arab News
EV surge poised to displace 5m barrels of oil per day by 2030, led by China: IEA
RIYADH: Electric vehicles are set to displace more than 5 million barrels of oil per day globally by 2030, highlighting their growing role in reshaping fuel demand and bolstering energy security, a new report stated. China alone is expected to account for half of this displacement, according to the International Energy Agency's latest global publication, as it continues to dominate global EV sales, manufacturing, and battery production. This shift is being driven by the rapid uptake of EVs across both developed and emerging economies, and in 2024, global electric car sales exceeded 17 million units — an increase of 3.5 million over the previous year and equivalent to the entire global market in 2020. The momentum is set to continue in 2025, with sales expected to surpass 20 million vehicles, capturing more than one-quarter of total car sales worldwide, the IEA stated. Saudi Arabia is no stranger to the global EV transition. As part of its Vision 2030 plan to diversify the economy and reduce reliance on oil, the Kingdom aims for 30 percent of vehicles in Riyadh to be electric by the end of the decade. The Saudi Public Investment Fund holds a 61 percent stake in US-based Lucid Motors, and the Kingdom has also launched its own EV brand, Ceer. In its latest report, the IEA said: 'Across all vehicle modes, the deployment of EVs replaces the use of more than 5 million barrels of oil per day globally in 2030, an important energy security consideration. Half of these savings are the result of EV adoption in China.' As EV adoption expands across vehicle types and regions, the cumulative effect on oil demand is becoming increasingly significant. China leading the way China remains at the center of this transformation. In 2024, the country sold more than 11 million electric cars — representing nearly half of all domestic car sales — and is projected to reach a 60 percent EV sales share in 2025. By the end of the decade, EVs are expected to account for 80 percent of all new car sales in China. Europe and Southeast Asia are also playing crucial roles. In Europe, stricter carbon dioxide emissions targets are forecast to increase the share of EVs to nearly 60 percent of all car sales by 2030, though this is slightly lower than previous forecasts. In Southeast Asia, strong policy support and emerging domestic manufacturing capacity are projected to lift EV sales to 25 percent by 2030. Electrification in the region is even more pronounced for two- and three-wheelers, with nearly one in three expected to be electric by the end of the decade. In contrast, the US is expected to see more modest growth. Based on current policies, EVs are projected to reach just 20 percent of new car sales by 2030 — significantly below earlier expectations. While US electric car sales rose 10 percent in 2024 to reach a 10 percent market share, and are on track to grow further in 2025, the long-term trajectory has been tempered by policy uncertainty and higher vehicle price premiums compared to internal combustion engine vehicles. 'Emerging markets in Asia and Latin America are becoming new centers of growth, with electric car sales jumping by over 60 percent in 2024 to almost 600,000 – about the size of the European market 5 years earlier,' the report said. Brazil saw EV sales more than double to 125,000 vehicles, capturing more than 6 percent of new car sales, the report stated. In Southeast Asia, EVs accounted for 9 percent of the market, with higher penetration rates in countries like Thailand and Vietnam. 'Sales in Africa also more than doubled, too, mostly thanks to growing sales in Egypt and Morocco, though electric cars still represent less than 1 percent of total car sales across the continent,' the report said. Saudi Arabia's drive to EV growth Saudi Arabia's EV ambitions have seen PIF investing over $10 billion in Lucid, which built its first international plant in King Abdullah Economic City, marking a critical step in domestic EV manufacturing. Ceer, being developed with Taiwan's Foxconn, will form a crucial part of the Kingdom's goal of producing 500,000 EVs annually by 2030. To support this growth, Saudi Arabia plans to deploy 5,000 fast chargers by 2030 and is expanding its renewable energy portfolio to power EV infrastructure sustainably. While absent from the latest global EV outlook, Saudi Arabia's investments signal a strategic shift in preparation for a lower-carbon future and the long-term impact of EVs on oil demand. Oil out, batteries in As EV adoption accelerates globally, the displacement of oil use is expected to intensify. Two key segments — light-duty passenger vehicles and heavy-duty trucks — are converging on tipping points for oil substitution. In China, where battery electric trucks have already reached total cost of ownership parity with diesel in certain applications, electric truck sales doubled in 2024 to 75,000 units, accounting for over 80 percent of the global market. By 2030, EV trucks in Europe and the US are also projected to achieve TCO parity for long-haul applications, further contributing to the reduction in oil consumption. Battery costs — an important driver of EV affordability — continued to decline sharply in 2024, particularly in China where prices fell by 30 percent, compared to a 10 percent to 15 percent drop in the US and Europe. Low prices of critical minerals and increasing manufacturing efficiencies have also contributed to making EVs more economically attractive. In emerging markets, Chinese EVs are enabling faster market penetration through lower price points. In Thailand, the average electric car is now priced on par with ICE models, and in Brazil, the price gap narrowed from over 100 percent in 2023 to 25 percent in 2024. Similarly, in Mexico, the premium dropped from more than 100 percent to around 50 percent as Chinese vehicles accounted for two-thirds of EV sales. Trade and industrial policy developments could affect the pace and scale of this oil displacement. Several countries are introducing or considering tariffs on Chinese EVs, prompting manufacturers to diversify export markets or increase overseas production. While lower oil prices could narrow the cost savings between EVs and internal combustion engine vehicles, the former are expected to remain competitive under a wide range of scenarios. Even at benchmark oil prices of $40 per barrel, home-charging in all major markets would offer significant savings compared to conventional fueling. In China, where public fast-charging costs are about twice that of home-charging, EVs still provide a cost advantage over petrol-powered vehicles.
