Saudi Arabia & Foxconn form a Joint Venture to enter the EV business

Saudi Arabia’s sovereign wealth fund has reportedly formed a JV (joint venture) with Taiwanese multinational electronics contract manufacturer, Foxconn to build and sell EVs, a move undertaken by the nation to reduce reliance on oil and diversify its economy.

According to the announcement, the new JV, known as Ceer will design, manufacture, and sell a portfolio of EVs by leveraging BMW’s component technology.

Foxconn, which also produces Apple’s iPhones, is developing the electrical architecture of the vehicles, which Saudi Arabia will be adding to its portfolio of products in connectivity, infotainment, and autonomous driving technologies.

Sources claim that the first Ceer branded EVs will come to the market in 2025.

The Saudi Public Investment Fund, or PIF, stated that Ceer is the first EV brand in the nation and is slated to attract $150 million+ in foreign direct investment and create up to 30,000 direct and indirect job opportunities.

Sources reveal that FDI (Foreign direct investment) is one of the crucial elements of Crown Prince Mohammed bin Salman’s Vision 2030 plan. Last year, the country announced a national investment strategy to attract more than $100 billion in FDI annually by 2030.

According to PIF, the Ceer brand will contribute nearly $8 billion to the kingdom’s GDP by 2034. PIF has made several investments in EVs as well as other clean energy technologies.

In 2018, the PIF became a leading investor of Lucid Motors by investing around $1 billion in the firm.

The PIF, which currently owns 61% of Lucid in spring 2022, is committed to purchasing 50,000 of Lucid’s EVs with further plans of buying an additional 50,000 vehicles over that same 10-year time frame.

For the record, Foxconn has been pushing deep into the automotive sector, especially around EVs. It has inked several deals to manufacture EVs for Fisker and Lordstown Motors. The firm has also collaborated with Yulon Group, a Taiwanese automaker, to build an electric SUV called the Model C.

Source credit - https://techcrunch.com/2022/11/03/iphone-maker-foxconn-and-saudi-arabia-are-going-into-the-ev-business/