KSA’s Ceer will source EV spare parts from Hyundai: South Korean automaker Hyundai Kefico — a subsidiary of Hyundai — has signed a KRW 250 bn (c. USD 196 mn) agreement to supply spare parts to Saudi Arabia’s first EV manufacturing company Ceer, Yonhap News Agency reports.

The details: Under the agreement, Hyundai will supply Ceer with vehicle control units — the travel computers which realize the control decisions of electric vehicles — and EV traction inverters, which transform direct current (DC) supply from EV batteries into an alternating current (AC) output. Talks between the two companies are still ongoing for additional supply agreements, Yonhap notes, adding that Ceer may invest a further KRW 450 bn (c.USD 353 mn) to source more EV components from the South Korean automaker.

Things are moving along for KSA’s first EV brand: The company received a manufacturing license from KSA’s Ministry of Industry and Mineral Resources last June for its planned USD 96 mn EV production plant. Once it kicks off operations, Ceer is expected to rake in over USD 150 mn in foreign direct investment with EVs expected to hit the market in 2025.

About Ceer: The company — a JV between Saudi Arabia’s sovereign wealth fund the Public Investment Fund (PIF) and Taiwanese multinational electronics contract manufacturer Hon Hai Precision Industry Company (Foxconn) — was established last November. The EV brand, which will license component technology from BMW, is expected to contribute USD 8 bn to Saudi Arabia’s GDP by 2034.