Riyadh has spent billions to try to turn itself into a hub for electric vehicles and overcome obstacles including a lack of infrastructure, talent and raw materials, as it seeks to catch up in the global race to reap the profits of the new industry.
As part of a broader plan by Saudi Crown Prince Mohammed bin Salman to wean the economy off oil and create jobs, the kingdom has invested at least $10 billion in U.S.-based Lucid Motors, set up Ceer, Saudi Arabia's own brand, and built an EV metals plant.
The Public Investment Fund (PIF), Saudi Arabia's $700 billion sovereign wealth fund, has a goal to produce 500,000 EVs annually by 2030, up from a target of 150,000 in 2026.
Yet by December, the kingdom's sole auto factory, opened in September 2023, had reassembled around 800 vehicles, based on kits supplied from Arizona.
Saudi Arabia has failed in the past to attract automotive manufacturing.
Japan’s Toyota (7203.T) declined a deal in 2019, citing high labour costs, a lack of local suppliers, and a small local market.
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