Riyadh, Saudi Arabia — The Public Investment Fund will soon announce complementary projects for the automobile industry, mainly batteries, said Muhammad AlShiha, Head of Automotive and Mobility Sector at PIF.
The fund has entered into the second phase of the automobile industry, AlShiha told Asharq News, explaining that the current stage aims to attract the industries related to the automobile system, such as tires, glass, and plastics to Saudi Arabia, according to Argaam.
The PIF has established three factories, Ceer, Lucid and Hyundai, finalizing the first phase of its mega project related to attracting the car manufacturing industry to the Kingdom.
The Kingdom’s annual demand is 800,000 cars, which justifies the presence of auto industry in Saudi Arabia. Further, Saudi Arabia’s regional location and free trade agreements help it drive these exports, Argaam reported.
The batteries industry is reliant on metals and countries often compete for these metals. Therefore, the fund established a company to acquire mines worldwide, a move that will eventually draw car manufacturers to the Kingdom.
The Public Investment Fund (PIF) and Pirelli Tyre S.P.A (Pirelli), a leading global tire manufacturer, have announced on Thursday the signing of a joint venture (JV) to build a tire manufacturing facility in Saudi Arabia.
PIF will hold a 75 percent stake in the new JV with Pirelli holding the remaining 25 percent and acting as a strategic technology partner to support the development of the project by providing technical and commercial assistance, according to a press release by the PIF.
The plant is expected to start production in 2026.
The JV will manufacture high-quality tires for passenger vehicles, under the Pirelli brand, and will also manufacture and market tires under a new local brand targeting the domestic and regional market.
The total investment in the JV is around $550 million. For Pirelli, the project will have a neutral impact on the company’s deleveraging targets to 2025.