Saudi Arabia Electric Vehicle Battery Market Overview, 2030

The Saudi Arabia EV battery market is rapidly expanding, driven by the country's commitment to reducing carbon emissions and promoting sustainable transportation. The Saudi government's supportive policies, such as subsidies and tax incentives, further bolster the market by encouraging EV purchases and home charging infrastructure. As the Saudi Arabia EV battery market continues to grow, it plays a crucial role in the country's sustainable future. The Saudi Arabia EV battery market has evolved significantly, driven by the country's Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil. Historically, the market has transitioned from early investments in conventional battery technologies to a focus on advanced lithium-ion and emerging solid-state batteries. Key regulatory policies include the Technical Regulation for Electric Batteries by the Saudi Standards, Metrology, and Quality Organization (SASO), which sets standards for battery performance, safety, and labeling. Additionally, the Water & Electricity Regulatory Authority has established guidelines for EV charging infrastructure to ensure safety and reliability. These policies, along with significant investments in charging infrastructure and collaborations with private sector partners, have positioned Saudi Arabia as a leader in the region's EV market.

According to the research report, "Saudi Arabia EV battery Market Overview, 2030," published by Bonafide Research, the Saudi Arabia EV battery market is anticipated to add to more than USD 440 Million by 2025–30. The Saudi Arabia electric vehicle (EV) battery market is experiencing significant growth driven by the nation's commitment to sustainable transportation solutions. The market is supported by government initiatives promoting electric mobility and reducing carbon emissions, which are expected to drive demand for EV batteries. Key market drivers include advancements in battery technology, the establishment of charging infrastructure, and increasing consumer awareness of environmental sustainability. Major players in the market include Obeikan Investment Group, which has partnered with Australian startup European Lithium to set up a lithium hydroxide refinery, and Avass Group, which is focusing on manufacturing large-scale lithium batteries and fully electric buses. The market is also influenced by the Saudi Green Initiative and Vision 2030, which aim to diversify the economy and promote cleaner energy sources. Challenges include competition from conventional internal combustion engine vehicles and the need for widespread charging infrastructure.

The propulsion segment of the Saudi Arabia EV battery market is diverse and rapidly evolving, driven by the nation's push for sustainable transportation and reduced carbon emissions. This segment includes battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs). BEVs, which rely entirely on battery power, are becoming increasingly popular due to their zero-emission benefits and government incentives. PHEVs, which combine electric power with internal combustion engines, offer flexibility for both short electric trips and longer journeys, addressing range anxiety. HEVs use a mix of electric and conventional engines to improve fuel efficiency and reduce emissions. Major players such as Tesla, BMW, and the Obeikan Investment Group are investing heavily in research and development to enhance battery performance, energy density, and reduce charging times. The Saudi government's policies and investments in EV infrastructure, including subsidies and the development of charging stations, support the growth of these propulsion technologies. As advancements in battery technology continue and consumer awareness of environmental benefits grows, the propulsion segment in Saudi Arabia is poised for substantial expansion, contributing significantly to the nation's sustainable transportation goals.

The vehicle type segment of Saudi Arabia's EV battery market is a dynamic and rapidly expanding field, driven by the nation's ambitious Vision 2030 agenda aimed at reducing carbon emissions and promoting sustainable transportation. This segment includes passenger cars, commercial vehicles, and special-purpose vehicles, each tailored to meet specific transportation needs and preferences. Passenger cars dominate the market, ranging from compact city cars to luxury sedans and SUVs, all designed for personal use with an emphasis on zero-emission driving. These vehicles are increasingly popular due to strong government incentives, such as subsidies and tax exemptions, which make them more affordable and accessible to the broader public. The expansion of the charging infrastructure across the kingdom ensures that drivers have convenient access to charging stations both at home and on the road, further encouraging the adoption of EVs. Commercial vehicles, including electric vans, trucks, and buses, are also gaining momentum, driven by the need for sustainable logistics and public transportation solutions. Electric vans and trucks are particularly favored for urban delivery services due to their lower operational costs and emissions. Meanwhile, electric buses are being integrated into public transport fleets, contributing to cleaner air and quieter cities.

The adoption of electric commercial vehicles is supported by government policies and initiatives promoting the use of EVs in both the public and private sectors. Special-purpose vehicles, such as electric taxis, ride-sharing vehicles, and municipal service vehicles, are increasingly popular as cities and businesses seek greener transportation options. These vehicles are tailored to meet specific operational requirements and are bolstered by policies encouraging the shift to zero-emission alternatives. Additionally, the rise of electric two-wheelers and micro-mobility solutions, such as electric scooters and bikes, offers efficient and eco-friendly options for short-distance travel and last-mile connectivity. Urban planning initiatives aimed at reducing traffic congestion and promoting sustainable modes of transport further enhance their adoption. Key players in this segment include automotive giants like Tesla and BMW and local companies like Obeikan Investment Group, which invest heavily in research and development to enhance battery efficiency, increase vehicle range, and reduce charging times. These companies, in collaboration with battery manufacturers such as LG Chem, Samsung SDI, and BYD, are driving technological advancements in the EV battery market. The Saudi government's regulatory framework, including the Technical Regulation for Electric Batteries by SASO and specific guidelines established by the Water & Electricity Regulatory Authority, provides strong support for the EV market by setting clear standards for battery performance, safety, and infrastructure development. Continuous advancements in battery technology, driven by both market demand and regulatory support, are expected to propel the Saudi EV battery market forward. Innovations such as solid-state batteries, which offer higher energy densities and faster charging capabilities, are poised to revolutionize the market by making EVs more practical and cost-effective. As consumer awareness of the environmental benefits of EVs grows and the advantages of electric vehicles become more apparent, the vehicle type segment is expected to see substantial growth. In summary, the vehicle type segment of Saudi Arabia's EV battery market is characterized by a diverse range of technologies and applications, from established lithium-ion batteries to emerging solid-state batteries. This diversity reflects ongoing innovation and strategic efforts to meet the evolving needs of the electric vehicle industry. The collaborative efforts of automotive manufacturers, policymakers, and technology developers will play a crucial role in shaping the future of the EV battery market in Saudi Arabia, ensuring it meets the demands of a rapidly evolving automotive landscape. This will position Saudi Arabia as a key player in the global transition to sustainable transportation, contributing significantly to the country's environmental and economic goals.



The battery type segment of Saudi Arabia's EV battery market is crucial for the nation's goal of promoting sustainable transportation and reducing carbon emissions, with a strong focus on advanced battery technologies to meet various vehicle needs. Dominated by lithium-ion batteries, these power sources are favored for their high energy density, efficiency, and long cycle life, making them the primary choice for a wide range of electric vehicles, including passenger cars, commercial vehicles, and special-purpose vehicles. Continuous advancements in lithium-ion technology have led to improved performance and reduced costs, accelerating their adoption across different vehicle types. Solid-state batteries are emerging as a transformative technology within this segment, offering higher energy densities, faster charging times, and enhanced safety due to solid electrolytes that mitigate risks like overheating and fires. Although still in early commercialization stages, solid-state batteries hold immense potential for the future of EVs in Saudi Arabia. Nickel-metal hydride (NiMH) batteries are also used, particularly in hybrid electric vehicles (HEVs), valued for their durability and performance despite lower energy density compared to lithium-ion batteries. Lead-acid batteries, while less common in modern EV applications due to their lower energy density, remain relevant in specific niches where cost-effectiveness and reliability are essential. Additionally, the market is exploring alternative battery technologies such as flow batteries and lithium-sulfur batteries. Flow batteries are known for their scalability and suitability for long-duration energy storage, while lithium-sulfur batteries aim to provide high energy densities at lower costs due to the abundance of sulfur. Key players in the Saudi EV battery market include global giants like LG Chem, Samsung SDI, and BYD, as well as local entities such as the Obeikan Investment Group, which are heavily investing in research and development to push the boundaries of battery technology. These investments are focused on enhancing energy efficiency, increasing vehicle range, and reducing charging times to make EVs more practical and cost-effective.


The Saudi government has established a robust regulatory framework through the Technical Regulation for Electric Batteries by SASO and guidelines set by the Water & Electricity Regulatory Authority, which emphasize reducing greenhouse gas emissions and expanding the EV market. The policy includes establishing a national network of EV chargers, reducing energy consumption in the transport sector, and promoting the use of renewable energy. Aligning with international standards, such as the EU Battery Regulation (2023/1542), which sets stringent guidelines for battery performance, durability, and sustainability, further underscores Saudi Arabia's commitment to maintaining high environmental standards. Investments in domestic battery production are pivotal, with initiatives to establish local manufacturing capabilities and reduce reliance on imported batteries. The collaborative efforts among automakers, battery manufacturers, and research institutions are crucial for overcoming technical challenges and accelerating the transition to electric mobility. As technological advancements, particularly in solid-state batteries, continue to evolve, the Saudi EV battery market is poised for significant growth. These innovations are expected to enhance the practicality and cost-effectiveness of EVs, supporting broader adoption and aligning with Saudi Arabia's goals for carbon neutrality. Increased consumer awareness of the environmental benefits of EVs is driving substantial growth in the battery type segment. This segment is characterized by a diverse range of technologies and applications, reflecting ongoing innovation and strategic efforts to meet the evolving needs of the electric vehicle industry. In summary, the battery type segment of Saudi Arabia's EV battery market is dynamic and essential for the country's push towards sustainable transportation. The collaborative efforts of automotive manufacturers, policymakers, and technology developers will play a crucial role in shaping the future of this market, ensuring it meets the demands of a rapidly evolving automotive landscape and positioning Saudi Arabia as a key player in the global transition to sustainable transportation. These efforts will significantly contribute to the nation's environmental and economic goals, establishing Saudi Arabia as a leader in the transition to a low-carbon future.

Considered in this report
• Geography: Saudi Arabia
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• EV battery Market with its value and forecast along with its segments
• Application wise EV battery distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Propulsion Type
• BEV
• PHEV
• HEV

By Battery Type
• Li-ion Battery
• Lead Acid
• Others (Nickel Metal Hybrid, Sodium ion, Solid state)

By Vehicle Type
• Passenger Vehicles
• Commercial Vehicles

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.