{"id":34311,"date":"2022-10-21T14:29:40","date_gmt":"2022-10-21T18:29:40","guid":{"rendered":"https:\/\/autosector.com\/?p=34311"},"modified":"2022-10-21T14:29:40","modified_gmt":"2022-10-21T18:29:40","slug":"saudi-arabia-targets-150000-ev-export-2026-diversify-from-oil","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=34311","title":{"rendered":"The world’s largest oil exporting nation targets 150,000 EV exports in 2026"},"content":{"rendered":"

One of the last nations you would expect to join the electric vehicle revolution, Saudi Arabia<\/a>, has announced its intentions to build and export EVs. The world\u2019s largest oil-exporting nation, Saudi Arabia, aims to export over 150,000 EVs in 2026. <\/p>\n

Saudi Arabia released its \u201cvision 2030<\/a>\u201d strategy to reduce carbon emissions while putting the nation on track for stable economic growth. <\/p>\n

The key word here is stable. With around 17% of the world\u2019s crude oil reserves, Saudi\u2019s economy largely depends on it, accounting for nearly half of the nation\u2019s GDP. <\/p>\n

However, as we have experienced over the past several years, oil prices can be extremely volatile. Oil futures turned negative<\/a> for the first time on record during the early stages of the pandemic as demand sharply fell. Earlier this year, oil prices climbed back above $120 per barrel with limited supply capacity and soaring demand.<\/p>\n

On top of this, as climate change becomes a priority around the globe, the question becomes, when will we see peak oil demand?<\/p>\n

It\u2019s been a record year in 2022 as countries around the globe work to reduce carbon emissions and achieve energy independence. As a result, renewable energy and electric vehicle deployment hit a new record and is already working to reduce emissions, according to new research<\/a>. In fact, renewable energy sources entirely covered<\/a> the global rise in electricity demand in the first half of 2022.<\/p>\n

New policies in most major developed nations are paving the way for meaningful reductions in CO2 emissions. Saudi Arabia realizes this and is therefore looking to diversify its economic interests while investing in the nation\u2019s future.<\/p>\n

To broaden its exports from oil, Saudi Arabia announced it will build and export zero-emission EVs.<\/p>\n

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Lucid Air electric vehicle in Saudi Arabia Source: Lucid<\/figcaption><\/figure>\n

Less oil, more EVs coming out of Saudi Arabia<\/h2>\n

Saudi Arabia has been in the headlines after its decision with OPEC+ to cut oil production. However, the nation is setting its sights on a different market with electric vehicles. <\/p>\n

The oil-rich nation announced earlier this year it had committed to purchasing<\/a> at least 50,000 (and up to 100,000) EVs from Lucid Motors<\/a> as part of its \u201cVision 2030\u201d plan. The strategy includes bringing advanced EVs to Saudi Arabia while increasing non-oil GDP to 50% compared to 16% today.<\/p>\n

Lucid revealed in 2018 that Saudi Arabia\u2019s Public Investment Fund (PIF) invested over $1 billion<\/a> in the EV startup, with rumors later swirling that the investment was contingent on Lucid building a manufacturing facility in the nation.<\/p>\n

It looks like Saudi plans to reduce its oil dependence at least partially by exporting EVs. Abdulla Al-Swaha, Saudi\u2019s Minister of Communications and IT, stated Wednesday:<\/p>\n

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In 2026, the Kingdom will manufacture and export more than 150,000 electric cars.<\/p>\n<\/blockquote>\n

Al-Swaha reiterated that Saudi\u2019s investment in Lucid \u201chas placed the Kingdom among developed countries\u201d with 61% ownership. <\/p>\n

According to Khalid Al-Faith, Minister of Investments, construction began at Lucid\u2019s EV manufacturing plant in May.<\/p>\n

Electrek\u2019s Take<\/h2>\n

Saudi Arabia going all in on EVs? Well, I wouldn\u2019t go as far as to say they are all in, but in my opinion, it\u2019s a smart move from \u201cthe Kingdom\u201d to diversify away from oil. <\/p>\n

The nation is looking toward the future, and all signs point to electric vehicles continuing to outpace their gas-powered counterparts. Not only that, renewable energy is rolling out at a rapid pace. When oil hits peak demand and starts to reverse, Saudi wants to have a backup plan, and EVs make sense. <\/p>\n

Electric vehicles are one of the fastest-growing industries right now and are expected to continue growing at an over 20% compound annual growth rate (CAGR) until at least 2030.<\/p>\n

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