Ceer And Hyundai Transys In $2-Billion Deal For Electric Vehicle Drive Systems
For Saudi Arabia’s Home Produced EVs
Ceer, Saudi Arabia’s first and only electric vehicle (EV) brand and original equipment manufacturer (OEM), has signed a $2.19 billion (SAR 8.2 billion) agreement with South Korea’s Hyundai Transys for the supply of cutting-edge Electric Vehicle Drive Systems (EDS) by the year 2027.
The strategic partnership between Ceer and Hyundai Transys, two global automotive industry leaders, is a monumental step. It underscores Ceer’s aim to incorporate state-of-the-art technology into its vehicles and position itself at the forefront of the global EV market.
Ceer, a joint venture between the Public Investment Fund (PIF)—Saudi Arabia’s $925 billion (SAR 3,469 trillion) sovereign wealth fund—and Foxconn, aims to revolutionise the automotive sector in Saudi Arabia and the MENA region.
Unlike traditional EDS setups, which typically comprise separate motors, inverters, and reduction gears, leading to power loss and spatial limitations, Hyundai Transys’s integrated EDS presents a more efficient and compact solution.
Hyundai Transys’s integrated EDS system is a true game-changer. Consolidating the motor, inverter, and reduction gear into a single unit reduces size and weight and significantly enhances power efficiency, marking a new era of innovation in the automotive industry.
This revolutionary technology simplifies EV design and enhances cost competitiveness, marking a significant leap forward in the EV industry. It sets a new standard for efficiency and innovation, promising a bright future for the automotive sector.
James DeLuca, CEO of Ceer, said: “This pivotal collaboration is a significant stride in our mission to catalyse the Saudi automotive sector. We are thrilled to join forces with Hyundai Transys, a prestigious addition to our roster of global partners, enabling us to integrate state-of-the-art EDS technology into our top-tier electric vehicles.”
Steve Yeo, CEO of Hyundai Transys, stated: “This agreement is a testament to our unwavering belief in the long-term success of this collaboration. We are committed to nurturing this relationship for a mutually beneficial and enduring partnership.”
$1.33-Billion Production Facility
This March, Ceer signed a $1.33 billion (SAR 5 billion) contract to develop the Ceer Electric Vehicle Manufacturing Complex in King Abdullah Economic City in Makkah province in Saudi Arabia.
The contract was awarded to Saudi Arabia-based Modern Building Leaders.
The complex, which spans one million square metres and has a roofed area of 530,000 square metres, will house dedicated zones for every stage of EV production.
The facility will boast cutting-edge infrastructure designed to meet global standards, from the press to the body shop, paint shop, and general assembly. Moreover, it will incorporate specialised zones for logistics, waste management, warehouses, offices, water treatment, and even a vehicle test track.
Speaking in March, DeLuca noted: “We are delighted to witness the realisation of our vision to ignite Saudi Arabia’s mobility industry, beginning with the construction of the Ceer Electric Vehicle Manufacturing Complex. This complex will benchmark industrial excellence within the region and globally.”
Vision 2030
Aligned with Saudi Arabia’s Vision 2030, Ceer is committed to economic diversification, carbon emission reduction, and sustainable development by producing technologically advanced electric sedans and SUVs.
The company plans to leverage partnerships with global industry leaders such as Dürr, Schuler, Siemens, and ABB to ensure the incorporation of the best technologies and practices.
Moreover, Ceer will integrate advanced systems from Foxconn and BMW into its manufacturing processes, promising vehicles that excel in infotainment, connectivity, and autonomous driving technologies.
Ceer’s impact extends beyond automotive innovation; it is poised to play a significant role in Saudi Arabia’s economic landscape. Projected to attract over $150 million (SAR 562 million) of foreign direct investment and create tens of thousands of direct and indirect jobs, Ceer aims to contribute $8 billion directly (SAR 30.01 billion) to Saudi Arabia’s GDP by 2034.
Saudi EV Market
The EV market in Saudi Arabia – currently dominated by Tesla, Ford, Chevrolet, Lucid, Hyundai, and some Chinese EV makers – is experiencing rapid growth and transformation.
The EV sector is gaining momentum, fuelled by ambitious government initiatives such as Vision 2030, which aims to reduce the large Gulf nation’s reliance on oil and embrace sustainable energy solutions.
With increasing environmental awareness and a push for technological innovation, Saudi consumers show greater interest in EVs as a lifestyle choice. Strategic partnerships between local and international players drive infrastructure development, including charging stations and manufacturing facilities.
As a result, Saudi Arabia is poised to emerge as a critical player in the global EV market, ushering in a new era of sustainable transportation.
Featured image: (L-R) Steve Yeo and James DeLuca confirm the new partnership between their two entities at the Hyundai Transys headquarters in Seoul, South Korea, on June 11, 2024. Credit: Ceer
