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Electric Vehicles … A Saudi Step Towards Establishing Sustainable Transportation

Saudi Arabia consolidates sustainability in the transportation sector by investing in electric vehicle manufacturing. Asharq Al-Awsat
Saudi Arabia consolidates sustainability in the transportation sector by investing in electric vehicle manufacturing. Asharq Al-Awsat
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Electric Vehicles … A Saudi Step Towards Establishing Sustainable Transportation

Saudi Arabia consolidates sustainability in the transportation sector by investing in electric vehicle manufacturing. Asharq Al-Awsat
Saudi Arabia consolidates sustainability in the transportation sector by investing in electric vehicle manufacturing. Asharq Al-Awsat

The announcement made by Lucid Group, an American electric vehicle manufacturer, on signing several agreements with Saudi government agencies, paving way for laying the groundwork for a full production factory in Saudi Arabia, is an important step that shows the competitiveness of the Kingdom in becoming a perfect investment destination and a top industrial force.

Lucid expects to manufacture up to 150,000 vehicles per year at the King Abdullah Economic City (KAEC) facility.

The move between the US firm and Saudi Arabia comes as a continuation of the relationship between the Public Investment Fund and Lucid since 2018, which has contributed to supporting the Kingdom’s efforts in manufacturing electric vehicles as part of the Saudi Vision 2030.

This would help the Saudi leadership in localizing the manufacturing of electric vehicles, creating job opportunities and diversifying economic resources by allowing the transportation sector to adopt sustainable energy.

CEO and CTO of Lucid Group Peter Rawlinson said the company’s partnership with the Saudi government agencies gives the firm unique insight into the demand for luxury cars and SUVs in Saudi Arabia and beyond. “We are thrilled to introduce the world’s most advanced electric vehicles to more global markets.”

Lucid anticipates that Saudi Arabia’s efforts to foster an automotive ecosystem through its Saudi Vision 2030 should yield cost savings for Lucid as well as environmental benefits, with reduced transportation of product to the customer.

Lucid expects to employ several thousand people at its KAEC facility once full production capacity is established, the majority of which are expected to be Saudi Arabian citizens.

Lucid has established an internship program with the PIF to provide educational opportunities and training for Saudi Arabian citizens at Lucid’s facilities in California and Arizona to develop talent for operations in Saudi Arabia. The company, in addition, will build and run dedicated training centers in KAEC to support skills development for the workforce.

The commitment of PIF’s strategy towards diversifying the economy and increasing revenues has contributed effectively to backing the efforts to transform the Kingdom to an industrial force, in addition to adopting environment friendly techniques that would limit carbon emissions and fight climate change.

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Chip Powerhouse Taiwan Calls for Economic Partnership Deal with EU

Taiwan President Lai Ching-te speaks at the annual Taiwan-EU investment forum in Taipei, Taiwan November 18, 2024. (Reuters)
Taiwan President Lai Ching-te speaks at the annual Taiwan-EU investment forum in Taipei, Taiwan November 18, 2024. (Reuters)
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Chip Powerhouse Taiwan Calls for Economic Partnership Deal with EU

Taiwan President Lai Ching-te speaks at the annual Taiwan-EU investment forum in Taipei, Taiwan November 18, 2024. (Reuters)
Taiwan President Lai Ching-te speaks at the annual Taiwan-EU investment forum in Taipei, Taiwan November 18, 2024. (Reuters)

Taiwan President Lai Ching-te called on Monday for the signing of an economic partnership agreement with the European Union, saying it would boost cooperation in semiconductors and that as democracies the two sides should be working together.

Taiwan has pushed for the signing of investment and trade deals with the EU, in what would be politically significant for Taiwan given its diplomatic isolation and general exclusion from most global bodies and agreements.

For its part, the EU has been courting Taiwan as a "like-minded" partner under the European Chips Act to encourage more semiconductor production in Europe and lessen dependence on Asia, despite the lack of formal ties with the Chinese-claimed island.

Speaking at a Taiwan-EU investment forum in Taipei, Lai said that facing the threat of expanding authoritarianism, Taiwan and the EU must form a "strong democratic umbrella" and build secure supply chains for global democracies.

"Looking to the future, Taiwan hopes to take an innovative approach towards the signing of an economic partnership agreement with the EU," he said.

Such an agreement would set a sound institutional basis for further cooperation in fields such as semiconductors and AI, Lai added.

"This would not only make both our economies more resilient and secure, but also ensure the stable operation of global supply chains."

Taiwanese investment in EU has been anchored by Taiwan Semiconductor Manufacturing Co (TSMC), which in August launched a major new chip plant in Dresden, Germany, expected to be a key supplier to European industry and automakers.

Maria Martin-Prat, deputy head of the European Commission's directorate general for trade, made no mention of signing such a deal with Taiwan in a video message to the investment event, though she did praise bilateral relations.

"Taiwan, a vibrant democracy with an open economy, is a trusted partner for us to promote our economic security," she said.

Taiwan has few free trade agreements, though last year it signed an Enhanced Trade Partnership with Britain and has applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP.