Saudi Arabia is enhancing its electric vehicle infrastructure with the launch of EVIQ, a new brand under the Electric Vehicle Infrastructure Co.
This joint venture between the PIF and the Saudi Electricity Company aims to deploy over 5,000 fast chargers at 10,000 locations across the kingdom to enhance its EV capabilities.
Saudi Arabia is taking strides toward sustainable transportation by introducing a new joint venture to foster electric vehicle (EV) adoption. This innovative endeavor aims to create a robust nationwide network of fast-charging hubs for EVs, ensuring the Kingdom’s momentum towards sustainability.
Bridging the Gap
#EVIQ, created to drive Saudi’s mobility sector into a bright electric future. A joint venture between @PIF_en and @ALKAHRABA, #EVIQ will build best-in-class EV charging infrastructure and create a nationwide network of fast-charging hubs. For details: https://t.co/CPAV2jwTDD pic.twitter.com/nqEEYGusiz— Eviq (@Eviqsa) November 12, 2023
As the name suggests, EVIQ’s primary objective is to create a conducive environment for EV adoption across Saudi Arabia. The company aims to establish a reliable, nationwide network of fast-charging hubs.
EVIQ CEO and Board Member Mohammad Bakr Gazzaz stated, “By providing a nationwide network of reliable, fast-charging hubs, EVIQ aims to bridge the gap and enable drivers in Saudi to buy and use EVs with confidence.”
The company’s collaboration with local partners for installation and maintenance is key to this effort, which will help build a strong foundation for the sector.
Aligning with Vision 2030
The launch of EVIQ is part of Saudi Arabia’s broader plan to shift towards a more sustainable economy as outlined in its Vision 2030 strategy. This involves expanding the country’s automotive capabilities to enhance its competitiveness on the global stage.
The strategy targets 13 strategic sectors, with the PIF mandated to invest $40 billion to $50 billion annually into the local economy. This will help generate jobs and grow the non-oil economic base of the country.
A Growing Global Trend
The global EV market is poised for significant growth, with projections estimating its value to reach about $1.6 trillion by 2030, up from an estimated $500 billion in 2023.
As part of its efforts to tap into this growing market, Saudi Arabia is focusing on building its domestic EV market. The Kingdom is strategically developing its local manufacturing sector as part of its Vision 2030 plan to diversify its economy away from oil.
EVIQ Company Structure
The PIF will own a 75% stake in EVIQ, while the SEC will hold the remaining 25% stake. This strategic partnership will help accelerate synergies across the EV supply chain, driving economic growth and diversification in line with Vision 2030.
Saudi Arabia’s efforts in the EV sector are not limited to the launch of EVIQ. The PIF has strategically invested in various EV companies, including Lucid Motors and Ceer.
The latter is the Kingdom’s first EV brand, launched in November last year, which is expected to attract more than $150 million in foreign direct investment and create up to 30,000 direct and indirect jobs.
Lucid Motors as A Key Player
Lucid Motors, another significant player in Saudi Arabia’s EV strategy, recently opened its first international manufacturing plant in the Kingdom. The California-based company, backed by the PIF, has begun assembling its first luxury sedan – Lucid Air – at a factory near Jeddah.
The factory is expected to produce 155,000 electric vehicles annually, further bolstering the Kingdom’s EV manufacturing capabilities.
The Road Ahead:
The launch of EVIQ marks an exciting chapter in Saudi Arabia’s drive towards a sustainable future. Saudi Arabia, known for its vast oil reserves, is looking to diversify its economy and become a hub for automotive manufacturing.
With the kingdom’s Vision 2030, the nation aims to manufacture more than 300,000 cars annually by the decade’s end. The Hyundai-PIF partnership aligns with these ambitious plans, significantly transforming the Saudi automotive sector.
These ventures are a testament to the Kingdom’s commitment to reducing its reliance on oil, promoting private sector participation, and supporting the localization of advanced technologies.
As the world continues to shift towards sustainable transport, Saudi Arabia is positioning itself as a global leader in the new electrified era of the automotive industry.