Executive Viability Abstract
This feasibility study evaluates the establishment of a large-scale Lithium-Ion (Li-ion) Battery Manufacturing Plant in Saudi Arabia, aligned with Vision 2030 and the National Industrial Development and Logistics Program (NIDLP). With the arrival of Lucid Motors and the launch of Ceer, Saudi Arabia is positioned to become a regional hub for EV production. The study analyzes a 10 GWh annual capacity plant aimed at meeting domestic demand and exporting to the MENA region.
Return on Investment
22.5% (Year 5 onwards)
Payback Span
6.8 years
Net Present Value
$840 million
IRR Index
19.4%
## Market Analysis
Saudi Arabia's EV market is projected to grow at a CAGR of 25% through 2030. The government aims for 30% of cars in Riyadh to be electric by 2030. Key demand drivers include government procurement mandates, subsidies for local manufacturing, and the presence of local OEMs like Lucid and Ceer.
## Capex Summary
The total estimated initial investment is $1.2 Billion.
- Land and Infrastructure: $150M
- Production Equipment (Electrode coating, Cell assembly, Formation): $750M
- R&D and Testing Facility: $100M
- Working Capital & Pre-operating expenses: $200M.
## Revenue Model
Revenue is generated via:
1. Direct sales of battery packs to local EV manufacturers.
2. Sale of stationary energy storage systems (ESS) for NEOM and Red Sea projects.
3. Export contracts to GCC and European markets.
4. Battery recycling and secondary life services.
## Financial Projections
Yearly revenue is expected to stabilize at $2.5B by Year 4, with an EBITDA margin of 18%. Government tax holidays and low-cost energy supply from the grid significantly enhance the bottom line.