Saudi Arabia Electric Vehicle Battery Market Size and Forecast by Propulsion Type, Battery Type, and Vehicle Type: 2019-2033

Saudi Arabia Electric Vehicle Battery Market Growth and Performance

• Saudi Arabia EV battery market recorded XX% year-on-year growth in 2024, driven by increased investment and policy support, closing the year at US$ XX million.
• Looking ahead, a CAGR of XX% is forecasted through 2033, taking the market beyond the US$ XX million mark.

Saudi Arabia Electric Vehicle Battery Market Outlook

Saudi Arabia's electric vehicle (EV) battery market is witnessing a transformational phase, driven by the nation's ambitious Vision 2030 goals. With a strong push towards diversifying its economy beyond oil, Saudi Arabia is investing heavily in electric mobility, battery manufacturing, and associated technologies. The Kingdom aims to position itself as a major hub in the global EV supply chain by capitalizing on its abundant mineral resources, strategic location, and robust government backing. The Saudi government has set an ambitious target for EVs to account for 30% of all vehicles in Riyadh by 2030, while simultaneously nurturing a domestic EV industry supported by world-class battery production facilities. These investments are expected to catalyze not only the local market but also Saudi Arabia’s influence in global battery supply chains, offering new opportunities for investors, manufacturers, and technology providers alike.

Saudi Arabia is strategically advancing its presence in the EV battery supply chain through strategic collaborations and mineral resource development. A major part of the Kingdom’s strategy includes partnerships with Morocco, leveraging the critical raw materials essential for EV battery production such as lithium, cobalt, and phosphate. Benchmark Mineral Intelligence reports that Saudi Arabia’s investments in refining, battery cell manufacturing, and component sourcing aim to make the region a powerhouse for EV batteries. The government is fostering a vertically integrated EV ecosystem—from mineral extraction to final battery pack assembly—through new industrial zones like the King Abdullah Economic City (KAEC) and massive funding programs. This emerging infrastructure not only supports local EV production but also positions Saudi Arabia as a critical supplier to Europe and Asia, reducing reliance on traditional battery manufacturing hubs.

Innovations in lithium extraction technologies are a vital pillar supporting Saudi Arabia's EV ambitions. Recently, Saudi researchers and companies introduced new environmentally friendly lithium extraction methods that could significantly reduce the cost and environmental footprint of battery production. According to EV Life, these techniques aim to extract lithium from unconventional sources such as seawater and low-grade ores, providing the Kingdom a technological edge in securing battery material supplies. By investing in such groundbreaking methods, Saudi Arabia seeks to mitigate the challenges of limited global lithium supplies while strengthening its domestic production capabilities. These innovations not only bolster Saudi Arabia’s standing in the global EV market but also contribute to the broader shift toward sustainable and efficient battery production worldwide.

Saudi Arabia’s commitment to e-mobility extends beyond battery production to include a comprehensive rollout of EV infrastructure. The government recently launched a national EV infrastructure company tasked with building an extensive network of charging stations across the Kingdom. This initiative, supported by the Ministry of Energy and Public Investment Fund (PIF), is essential to accelerate EV adoption and meet the Vision 2030 sustainability targets. The infrastructure plan includes high-speed chargers along highways, urban centres, and remote areas to ensure convenience and accessibility for EV owners. This national program not only supports local EV brands but also encourages international OEMs to consider Saudi Arabia as a viable market for EV expansion, enhancing both domestic mobility and foreign investment prospects.

Saudi Arabia is also making headlines in the EV technology space through strategic partnerships with global innovators. CEER, Saudi Arabia’s first domestic EV brand backed by PIF, recently partnered with Croatia's Rimac Group to develop high-performance e-drive systems. According to Electric Hybrid Vehicle Technology, this collaboration will enable CEER to integrate cutting-edge technology into its vehicle lineup, offering faster acceleration, improved energy efficiency, and extended driving range. Rimac’s expertise in battery and drivetrain technology ensures that CEER's vehicles will be competitive with top global EV brands. These technological alliances signal Saudi Arabia’s commitment to not just participating in, but leading, the next generation of electric mobility and sustainable transportation.

The momentum in Saudi Arabia’s EV sector is undeniable, as the Kingdom actively seeks to establish a resilient and competitive domestic electric vehicle industry. The focus on upstream (mineral extraction), midstream (battery manufacturing), and downstream (vehicle production and charging infrastructure) operations demonstrates a comprehensive strategy. These developments promise a dynamic future for the Saudi Arabia Electric Vehicle Battery Market, aligning with global trends toward decarbonization and energy transformation. As the ecosystem matures, Saudi Arabia is poised to become a vital player in the international EV supply chain, offering sustainable solutions and innovative technologies for the mobility sector of the future.

Saudi Arabia Electric Vehicle Battery Market Scope