In the bustling capital of Riyadh, Saudi Arabia, a groundbreaking event unfolded as Ceer, the nation’s first electric vehicle (EV) brand and Original Equipment Manufacturer (OEM), announced a series of partnerships at the 3rd PIF Public Sector Forum. These 11 new agreements, valued at SAR 5.5 billion (approximately USD 1.5 billion), represent a monumental step forward in Ceer’s journey. Over 80% of these collaborations are with Saudi companies, signaling a robust commitment to localizing the automotive sector and advancing the objectives of Saudi Arabia Vision 2030.
Building a Localized Ecosystem: A Strategic Approach
Ceer's CEO, Jim DeLuca, emphasized the importance of these local partnerships. "While we're bringing global expertise and world-class partners to Saudi Arabia," DeLuca explained, "building a robust local ecosystem is even more critical. These partnerships are crucial not only for a thriving automotive industry, but also for creating future jobs and driving economic growth in the Kingdom."
Since its inception, Ceer has recognized the pivotal role of localization in creating a sustainable supplier ecosystem. The company has forged partnerships with 263 local enterprises, awarding contracts worth SAR 6.6 billion. This initiative includes collaborations with Modern Building Leaders (MBL), Nahil Computer, Bupa Arabia, Atlas Industrial Equipment Co., Saudi Business Machines, and Liva Insurance. These agreements not only align with Ceer's localization targets but also bolster the nation's industrial capabilities.
Furthermore, by working with local suppliers, Ceer ensures access to top-quality components for its vehicles. This collaborative approach fosters a sustainable automotive sector, aligning perfectly with the broader economic goals of Saudi Arabia.
Global Expertise Meets Local Excellence
Ceer’s strategic partnerships extend beyond local borders, encompassing global industry giants like Foxconn, BMW, Siemens, RIMAC, Hyundai Transys, Sabelt, Schuler, and Dürr. These collaborations are integral to Ceer's ambition to design, engineer, manufacture, and sell the first Saudi EVs, positioning the company as a key player in the global EV market.
The newly signed local partnerships will supply major components and accessories for Ceer vehicles. They also enable key collaborations between global companies and existing Saudi industry leaders with decades of experience. This synergy is vital for forming strategic partnerships and driving the Kingdom’s industrial growth.
Moreover, the King Salman Automotive Cluster is becoming a hub for these activities, with several tier 1 global suppliers localizing their operations. Esteemed partners such as Lear, Forvia, Shinyoung, Benteler, JVIS, and Pirelli are now part of this thriving ecosystem. These collaborations underscore Ceer's commitment to integrating international expertise with local excellence.
Diverse and Dynamic Collaborations: The Heart of Ceer's Strategy
The Memorandums of Understanding (MoUs) signed at the forum encompass a wide range of components vital for EV production. For instance, Zamil Central Air Conditioners Co. Ltd. will manufacture HVAC systems, while Zamil Plastic Industrial Company will provide plastic injected parts. Additionally, Obeikan Glass Company and Abdul Latif Jameel Enterprises (ALJ) will supply alloy wheels.
Ceer's localization efforts also include agreements with Saudi Company for Controls and Maintenance (Saudi Controls Ltd) for portable chargers for electric vehicles, Arabian Plastic Industrial Co. (APICO) for blow parts, Saudi Aluminum Casting Company (SAC) for aluminum casting, and First Telecom Industries (FTI) for small stampings. These partnerships are essential in ensuring that the components used in Ceer vehicles are of the highest quality and meet the standards of a world-class automotive brand.
In an exciting development, Ceer has also entered into an agreement with the global supplier CTR to localize aluminum forged parts in Saudi Arabia. This partnership highlights Ceer's commitment to bringing advanced manufacturing capabilities to the Kingdom.
A Vision for the Future: Ceer’s Role in Saudi Arabia’s Automotive Landscape
Ceer's journey represents a pivotal moment in igniting the automotive industry in Saudi Arabia. As Jim Deluca, Ceer CEO, succinctly put it, “Ceer is at a pivotal moment in its journey to ignite the automotive industry, and we look forward to engaging in fruitful discussions and exploring further opportunities for partnership and collaboration with others who share our vision.”
Ceer’s achievements to date are a testament to its strategic vision and commitment to fostering an innovative, localized automotive sector. The company’s comprehensive approach involves not only producing vehicles but also developing a complete supply chain and ecosystem that supports the industry in Saudi Arabia.
As Ceer continues to explore new opportunities for partnership and collaboration, it remains committed to its vision of becoming a key player in the global EV market. By leveraging both global expertise and local excellence, Ceer is poised to drive significant change in the automotive landscape, contributing to the broader economic objectives of Saudi Arabia Vision 2030.
Ceer's SAR 5.5 billion agreements are more than just business transactions; they are a catalyst for transformation. Through strategic partnerships and a steadfast commitment to localization, Ceer is paving the way for a sustainable, dynamic, and prosperous future for Saudi Arabia’s automotive industry. This journey is not only about manufacturing electric vehicles; it's about shaping a new era of innovation and growth for the Kingdom.
