Hyundai has signed a joint venture agreement with PIF to establish a manufacturing plant in Saudi Arabia. The carmaker has also signed an MoU with KATECH, APQ and SAPTCO to create a hydrogen mobility ecosystem in the Kingdom of Saudi Arabia.
Hyundai To Setup Manufacturing Plant In Saudi Arabia
Hyundai recently signed a joint venture with Public Investment Fund (PIF) to set up a vehicle manufacturing plant in Saudi Arabia. The total investment for the establishment of the manufacturing facility is said to exceed USD 500 million, out of which PIF will have a 70% stake and Hyundai will have the remaining 30%.
The new manufacturing plant will manufacture 50,000 vehicles every year, including both internal combustion and electric vehicles. The plant groundbreaking is scheduled for 2024 and production is set to begin in 2026. Supporting the launch of electric vehicles, the newly formed Electric Vehicle Infrastructure Company will install over 5,000 fast chargers in Saudi Arabia by 2030.
Commenting on the JV, Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said: “Partnering with Hyundai is another significant milestone for PIF in successfully enabling and accelerating the growth of Saudi Arabia’s automotive ecosystem – one of our 13 priority sectors. Our investment in vehicle manufacturing with Hyundai Motor Company is a pivotal milestone, aligning closely with our existing stakes in Lucid and Ceer Motors, and amplifying the breadth of Saudi Arabia’s automotive and mobility value chain.”
Hyundai To Form Hydrogen Mobility Ecosystem
Hyundai signed a Memorandum of Understanding (MoU) with the Korea Automotive Technology Institute (KATECH), Air Products Qudra (APQ) and the Saudi Public Transport Company (SAPTCO) to establish and develop an ecosystem for hydrogen-based mobility in Saudi Arabia.
Both parties will work on demonstrating projects for hydrogen fuel cell vehicles and also explore opportunities for joint research on hydrogen-based mobility solutions. Furthermore, Hyundai is also expected to supply hydrogen fuel cell commercial vehicles to the public transport company of Saudi Arabia. SAPTCO, on the other hand, is expected to collaborate with stakeholders to formulate a long-term plan to further expand the ecosystem of hydrogen-based mobility solutions.
Meanwhile, KATECH will explore further opportunities for collaboration in research and development while APQ will work closely with the hydrogen supply in Saudi Arabia, supporting the partnership.
Speaking on the announcement of the MoU, Seung-sik Na, President of KATECH, said: “This cooperation opens doors for our hydrogen bus technology to enter the Middle East market. We will work towards developing hydrogen buses suitable for high-temperature climates with the automotive industry so that the domestic automotive industry to expand its presence globally.”