NUPCO secures $667m in financing to boost Saudi healthcare supply chain

RIYADH: Saudi Arabia’s first homegrown electric vehicle brand, Ceer, signed 11 deals worth SR5.5 billion ($1.4 billion) at a Public Investment Fund event ahead of its model launch in 2026

More than 80 percent of these agreements involve Saudi companies, reinforcing Ceer’s commitment to its 45 percent localization target and advancing the Kingdom’s Vision 2030’s economic diversification goals.

Among the key memorandums of understanding signed at the PIF Private Sector Forum are agreements related to heating and air conditioning, portable EV chargers and various manufacturing aspects, such as plastic injection parts.

In an interview with Arab News on the sidelines of the event, Jim DeLuca, CEO of the company, said: “At Ceer, we say we’re not just starting a car company. We are igniting the automotive industry,” he said.

DeLuca highlighted that Ceer is the only company in Saudi Arabia managing the entire process — from designing and engineering to manufacturing, selling, and servicing a portfolio of battery electric vehicles.

He highlighted the King Abdullah Economic City manufacturing plant, a cutting-edge facility capable of producing 38 jobs per hour with integrated shops for press, body paint, and general assembly. “You can’t have an automotive ecosystem without a local supply base, so we’ve attracted some of the best global tier-one suppliers, they too are joining us in KAEC, and so we’re developing this whole ecosystem.”

DeLuca outlined Ceer’s strategic supply chain approach, explaining how global tier-one suppliers produce key components and subassemblies that will be shipped into the plant on schedule.

“We’re talking about things like front-rear subframes, interiors, front-rear fascias, body components, but that’s only the beginning. Those tier ones need a tier-two supply base, and many of today’s announcements are tier-two suppliers who will provide smaller parts and components to the tier ones, who will then supply to us just in time,” he explained.

Ceer’s localization efforts ensure an efficient, cost-effective supply chain. “This is a capital-intensive, low-margin business, you need a laser-like focus on the strategic elimination of waste,” the top official said.

He added: “One of the ways you do that is by having your supply base right next to the plant. And because we’re in KAEC with Lucid and Hyundai, and hopefully one day others, that’s the type of volume these suppliers need to have a very positive business case.”

Scaling up production and Saudi’s automotive future

Ceer’s business plan extends through 2034, with the KAEC plant set to ramp up production in phases. “In 2024, we started plant construction. In 2025, we will install process equipment — press, body paint, general assembly. Then, at the beginning of 2026, we start validation builds, moving from non-salable to salable.”

DeLuca revealed that by the last quarter of 2026, Ceer will be up and running, producing its first two aspirational vehicles for sale in Saudi Arabia.

The CEO also emphasized the importance of the King Salman Automotive Cluster, which serves as the industry umbrella for KAEC’s expanding automotive sector. Ceer has secured contracts with major tier-one suppliers, including Lear, Forvia, and Shinyoung, as well as Benteler, and JVIS, to localize key vehicle components. 

“These are global tier-ones, and we already have contracts with them. They haven’t been formally announced yet, but we’re talking about front-rear subframes, interiors, exterior body components, and sheet metal components — all large, complicated, and expensive to ship, so co-locating with the assembly plants is the right strategy,” he added.

Advancing charging infrastructure and market adoption

Addressing adoption challenges facing the sector, DeLuca pointed to PIF’s EV infrastructure initiative, EVIQ, which is deploying charging stations across major Saudi cities. 

“A lot of people have anxiety when considering a battery electric vehicle. What gives them comfort is a strong charging infrastructure. EVIQ is rolling out charging stations in Riyadh, Jeddah, Dammam, and beyond to ensure a seamless transition as we ramp up production,” he said.

Ceer plans to introduce seven vehicle models, spanning the E, D, and C segments, including sedans and SUVs, from 2026 to 2029. 

Ceer’s growth strategy and future outlook

Ceer’s assembly complex is designed for an annual capacity of 240,000 units and is fully funded, according to the CEO. 

“Our current business plan is fully funded through 2034 between our shareholders and other financial instruments. I think the vision of any company is eventually, potentially to have an IPO (initial public offering) where you can start to monetize all of the great work that has taken place, so I won’t say one day it’s not going to happen,” he added.

He acknowledged that global EV market adoption has been slower than anticipated, emphasizing that product quality, pricing, infrastructure, and incentives will drive Saudi Arabia’s transition. “The Ministry of Investment is working on ecosystem incentives to accelerate EV adoption. We see steady growth in the early days, but incentives will be key to making EVs the catalyst for Saudi Arabia’s automotive transformation.”

Ceer’s agreements and localization drive

According to a press release, agreements were signed at the event with Zamil Central Air Conditioners Co. for heating, ventilation, and air conditioning systems, Zamil Plastic Industrial Co. for plastic injection parts, Obeikan Glass Co. and Abdul Latif Jameel Enterprises for alloy wheels, and the Saudi Co. for Controls and Maintenance for portable EV chargers. 

Additional deals include Arabian Plastic Industrial Co. for blow parts, Saudi Aluminum Casting Co. for aluminum casting, First Telecom Industries for small stampings, and CTR for localizing aluminum forged parts in Saudi Arabia. 

Ceer has also partnered with 263 local companies, awarding businesses worth SR6.6 billion to firms such as Modern Building Leaders, Nahil Computer, and Bupa Arabia, as well as Atlas Industrial Equipment Co., Saudi Business Machines, and Liva Insurance.

Speaking at the forum, DeLuca underscored Ceer’s role in realizing Vision 2030’s industrial and economic diversification goals. “Over the next decade, we will attract more than $150 million in foreign direct investment, create up to 30,000 direct and indirect jobs, localize 45 percent of our product content or built material and contribute $8 billion directly to Saudi’s GDP by 2034,” he said.

The company’s manufacturing complex, a $1.3 billion facility spanning 1 million sq. meters in King Abdullah Economic City, is poised to become the largest and most technologically advanced automotive production hub in the Middle East and North Africa region. 

As part of its expansion strategy, the automotive company is set to welcome six major partners to KAEC, collectively contributing over SR50 billion in value. 

DeLuca highlighted Ceer’s commitment to localizing its supply chain, with 45 percent of its product content and built materials to be sourced within the Kingdom.

The company’s workforce has already grown to over 1,300 employees, according to the top official, with a team of global experts bringing extensive experience to drive innovation and competitiveness. 

DeLuca emphasized that strategic collaborations with leading automotive players such as Hyundai and Rimac are ensuring Ceer’s electric vehicles are technologically advanced and globally competitive.

One of Ceer’s standout features will be its industry-leading paint shop, offering an extensive color palette with over 30 shades in gloss, matte, and satin finishes, setting a new benchmark in vehicle customization.

“We’re here today at this forum as a testament to the power of collaboration and to highlight the vital role that the private sector plays in achieving all elements of Vision 2030,” DeLuca said.

RIYADH: The Saudi Arabian Mining Co., or Ma’aden, will analyze terabytes of data from Aramco’s warehouses as part of its efforts to build two mines, its CEO revealed. 

In a discussion titled “Ma’aden: Saudi Arabia’s Mining Industry Pioneer” on the first day of the Public Investment Fund Private Sector Forum, taking place from Feb. 12-13 in Riyadh, Robert Wilt explained that the company intends to test the core samples using artificial intelligence as part of its 2025 key performance indicators. 

This falls in line with the Kingdom’s goal to increase the mining industry’s gross domestic product contribution from $17 billion to $75 billion by 2035.

It also aligns well with Saudi Arabia’s efforts to establish mining as the third pillar of the nation’s industrial economy.

“We are in the process of finalizing the joint venture with Aramco to partner together to explore all of the Arabian platform. Our efforts to date have been focused on the Arabian Shield. Aramco has been exploring the platform for oil and gas now for 80 some years. They’ve got, I can’t tell you how many terabytes of data and core samples in warehouses as big as this hall that have not been tested for minerals,” Wilt said. 

“Another one of our KPIs this year is to find two mines by mining that data using artificial intelligence. So, we’re throwing technology, AI, digitization, and innovation across everything from exploration all the way through processing to reduce costs, make it more sustainable, and most of all for us is acceleration,” he added. 

 During the talk, the CEO also shed light on the fact that Ma’aden is utilizing 72 percent of its exploration budget this year on copper. 

This comes as the company has not “really spent as much time looking for the energy transition metals and some of the other minerals that we know are here,” Wilt said. 

He added: “Just this year, we’ve announced two or three major gold discoveries and we’re on the precipice of announcing two copper discoveries. So, I can tell you the minerals are here and it’s just up to us to get them out of the ground, to extract them sustainably, safely, responsibly.” 

The CEO also emphasized that the firm is only 10 to 15 years old and that it is already the third-largest exporter of phosphate fertilizers.

“We’re the fastest growing mining company in the world for the last five years and we’re the eighth-most valuable mining company in the world by market capitalization. So, a meteoric rise over the last decade and a half,” Wilt said.

He added: “We need to make this thing 10 times bigger by 2040. So, the aspiration is to not be one of the most valuable mining companies in the world — has to be the most valuable mining company in the world. It is to feed more than 10 percent of the world’s population; it is to provide the metals and minerals required for the downstream diversification across the Kingdom, whether it’s aluminum, copper, lithium, zinc.”

The CEO noted that the company estimates that there are $2.5 trillion worth of reserves buried in the sands of Saudi Arabia. 

“If you look at the $2.5 trillion, 45 percent of its phosphate, and we know where that is. We’re already mining it; we’re already producing it. It’s the biggest part of our business,” Wilt said.

“But then some of the exotic minerals like rare earth elements, you know, we’re close to being able to talk about that publicly. There’s a lot of interest in the Kingdom for some from some near-stage discoveries where we’re making there, so I would say probably 60 percent has been actively explored, and then the 40 percent we’ve got to accelerate through to the pipeline,” he added.

The forum, which will unite more than 90 PIF-backed companies, seeks to strengthen supply chains, boost local manufacturing, and accelerate economic diversification under Vision 2030.  

Now in its third year, the event will spotlight business opportunities with the sovereign wealth fund and its portfolio companies, identify potential prospects for investors and suppliers, and expand avenues for collaboration. It will also serve as a bridge between PIF, its portfolio companies, and the private sector, reinforcing localization efforts.