Saudi Arabia’s two industrial heavyweights have agreed to work together on advanced materials for electric vehicles, with implications for the country’s broader manufacturing ambitions.
What Did SABIC and Ceer Actually Agree To?
Saudi Basic Industries Corp. and Ceer signed a memorandum of understanding covering the use of SABIC’s advanced materials in vehicle design, development, and production. The agreement sets out a framework for identifying commercial opportunities and assessing how SABIC’s speciality solutions could be built into Ceer’s vehicles.
The scope covers possible use of SABIC materials in selected vehicle applications. In addition, it includes joint development of materials and manufacturing solutions, and cooperation on sustainability, technology, and sourcing.
Who Are the Companies Behind This Deal?
SABIC is Saudi Arabia’s largest chemicals and materials group, headquartered in Riyadh. The company has spent several years building its position as a materials supplier to the global electric vehicle industry, with previous work spanning battery nanotechnology, Formula E technology, and powertrain materials.
Ceer launched in 2022. The Public Investment Fund and Foxconn founded it together. Ceer is now one of the most prominent domestic car brands in the Kingdom, with a manufacturing operation designed from the outset around Saudi industrial policy.
What Does This Mean for Saudi Arabia’s EV Industry?
Saudi Arabia’s Vision 2030 programme sets a clear direction for the country’s industrial base. The goal is a domestic EV ecosystem, with local supply chains rather than dependence on imported components and technology.
Ceer has moved quickly on localisation. Earlier this year, the company signed sixteen agreements worth more than 3.7 billion Saudi riyals. It is targeting forty-five per cent Saudi localisation by 2034. Official projections put Ceer’s contribution to gross domestic product at thirty billion riyals by the same year, with up to thirty thousand direct and indirect jobs created as a result.
What Do the Leaders of Each Company Say?
The signing ceremony at SABIC’s headquarters in Riyadh was attended by Dr. Faisal M. Alfaqeer, SABIC CEO and Executive Board Member, and Mr. James DeLuca, CEER CEO.
Dr Faisal Al-Faqeer said the partnership draws on the group’s global experience in advanced materials for EVs. He added that the deal would accelerate innovation, raise local content, and strengthen a national supply chain.
He commented: “The memorandum represents a strategic collaboration which leverages SABIC’s global expertise in advanced material solutions for the electric vehicle industry. Through this partnership, we aim to accelerate innovation, enhance local content and build an integrated national supply chain that enhances global competitiveness. This collaboration also reflects our shared commitment to contribute to Saudi Vision 2030 and the National Industrial Strategy, empowering national talent, and strengthening Saudi Arabia’s position as a regional hub for future industries and technologies.”
Ceer chief executive James DeLuca described the agreement as an important step. He explained that building a “world-class electric vehicle” in Saudi Arabia is the objective. Therefore, both executives framed the MoU as part of a longer industrial effort, not a standalone transaction.
The companies’ leaders at the signing ceremony.
How Does This Fit SABIC’s Wider EV Strategy?
SABIC has been active in EV-related materials for some time. Its work on battery nanotechnology addresses one of the core engineering challenges in electric vehicle development. Meanwhile, its involvement in Formula E gave the company applied experience in high-performance powertrain chemistry.
Consequently, the Ceer agreement adds a domestic dimension to what has largely been an international materials strategy. For a Saudi company of SABIC’s size, supplying a Saudi carmaker carries industrial and strategic weight beyond the commercial terms of any single contract. In addition, the deal gives Ceer access to a materials partner with existing EV credentials, which matters as the company prepares to move from agreements and frameworks into actual vehicle production.
