SABIC and CEER Sign MoU to Explore EV Industry Collaboration in Saudi Arabia
Electric Vehicle News — Saudi Arabia
SABIC and CEER have signed a memorandum of understanding to explore the use of advanced materials and processing solutions in Saudi-built electric vehicles, while assessing strategic sourcing and local supply-chain opportunities.
July 21, 2026
Agreement announced
Riyadh
Signing location
Advanced materials
Technical focus
Saudi Vision 2030
Local industry alignment
SABIC, a global leader in diversified chemicals, has signed a memorandum of understanding with CEER, Saudi Arabia’s first electric vehicle brand and original technology equipment manufacturer. The agreement will explore how SABIC’s advanced materials and innovative solutions could support the design, development and manufacture of CEER’s electric vehicles.
The signing took place at SABIC’s headquarters in Riyadh in the presence of Dr. Faisal M. Alfaqeer, SABIC CEO and Executive Board Member, and James DeLuca, CEO of CEER. The two companies will also evaluate mutually beneficial commercial opportunities and define terms for possible future collaboration.
What does the SABIC–CEER agreement cover?
The MoU establishes a framework for evaluating technical and commercial opportunities. It is not a final supply contract; instead, it allows SABIC and CEER to assess suitable applications, develop relevant solutions and determine where a longer-term partnership could create value.
- Evaluate SABIC advanced materials for selected applications in CEER vehicles.
- Jointly develop material and processing solutions that meet automotive-industry requirements.
- Exchange knowledge and experience in sustainability, technology and product development.
- Explore strategic sourcing opportunities that can strengthen a reliable local supply chain.
- Identify further areas of collaboration agreed by both companies.
Supporting innovation and local content
“Through this partnership, we aim to accelerate innovation, enhance local content and build an integrated national supply chain that enhances global competitiveness.”
Why does the agreement matter to Saudi Arabia’s automotive industry?
The agreement brings together SABIC’s materials science and engineering capabilities with CEER’s mission to design, engineer and manufacture electric vehicles in Saudi Arabia. Advanced materials can help vehicle makers pursue lower weight, manufacturing efficiency and strong safety and performance targets.
Its emphasis on local sourcing, knowledge exchange and industrial capability also supports Saudi Vision 2030 and the National Industrial Strategy. A competitive domestic EV sector requires a dependable supplier network built to global standards, not only a vehicle assembly operation.
“By integrating SABIC’s materials and deep technical expertise into our vehicles, we are building a robust and reliable local supply chain.”
Advanced materials for the next generation of electric vehicles
SABIC has decades of experience in advanced thermoplastics and other material solutions used by the automotive industry. These technologies can support lightweight and cost-effective components while helping manufacturers meet demanding safety and performance requirements.
For electric vehicles, reducing weight and improving component integration can contribute to efficiency, while appropriate processing solutions help move a design toward scalable production. The precise vehicle applications covered by the collaboration will depend on the evaluations conducted under the MoU.
About CEER
CEER is the first Saudi automotive brand created to produce electric vehicles in the Kingdom. The company is a joint venture between the Public Investment Fund and Hon Hai Precision Industry Co., better known as Foxconn.
CEER plans to design, engineer, manufacture and sell sedans and sport utility vehicles for customers in Saudi Arabia and the wider region. BMW is providing licensed component technology and vehicle-development expertise, while Foxconn is developing the vehicles’ electrical architecture.
According to the press release, CEER is projected to contribute US$8 billion directly to Saudi Arabia’s GDP, improve the trade balance by US$21 billion and create tens of thousands of direct and indirect jobs by 2034.
Conclusion
The MoU gives SABIC and CEER a structured path to assess advanced materials, sustainable manufacturing solutions and strategic sourcing. If the evaluations progress into production programmes and supply agreements, the collaboration could help localise a valuable part of Saudi Arabia’s emerging electric-vehicle supply chain.