In pursuit of its goals towards energy transition, Saudi Arabia is banking on electricity to renovate the mobility sector. As many as 100,000 electric vehicles could be supplied to the kingdom over a ten-year period.
The Saudi Ministry of Finance has signed an agreement with Lucid, the Californian car manufacturer, under which 50,000 electric cars are committed to the kingdom’s purchase, with a further 50,000 models listed as an option to purchase over the same period.
Slowly introduce electric, replace petrol
Saudi Arabia intends to methodically replace fossil fuels with renewable energy, gradually increasing the rate of electric car supply. 1,000 to 2,000 vehicles per year are expected to be delivered until 2025, before increasing to 4,000 to 7,000 cars per year. Although the new range of 100% carbon-neutral luxury SUVs is aimed primarily at the country’s upper social classes, the initiative is nonetheless an opportunity for economic growth for Saudi Arabia.
From sustainable mobility to a sustainable economy
Vision 2030, complemented by the kingdom’s Saudi Green Initiative, is committed to breaking out of the circle of fossil fuel consumption in order to achieve sustainable development goals, including carbon neutrality and the employment and professional training of its youth. For example, the Saudi kingdom is planning to set up an international Lucid factory to encourage the construction of local sustainable cars, which would also benefit the employment of its population and the country’s expertise in this sector. The Saudi public fund already holds 62% of the American car manufacturer’s capital and intends to make its investment a concrete achievement for its economy.