Saudi EV maker Ceer inks USD 2.2 bn supply agreement with Hyundai Transys

Ceer lines up more EV component suppliers: KSA’s EV company Ceer has inked a SAR 8.2 bn (c. USD 2.2 bn) contract with global auto parts maker Hyundai Transys to supply advanced EV drive systems (EDS) for its vehicles, according to two separate statements (here and here).

The details: Ceer will install the integrated drive systems in its entire EVs lineup including SUVs, sedans and coupe models. The contract marks the first by Hyundai Transys for a global automaker. Hyundai Transys is a unit of South Korean automobile giant Hyundai Motor Group.

What is EDS? Unlike typical EDS — which is made up of separated motors, inverters, and reduction gears — the Hyundai Transys’ EDS is an integrated 3-in-1 system that combines the EV’s motor, inverter, and the reduction gear. This system is smaller, lighter, and more power efficient than traditional ones, making it easier for EV manufacturers to design their vehicles and cut costs.

Not Ceer’s first partnership with Hyundai: Hyundai Kefico — another subsidiary of Hyundai — signed a KRW 250 bn (c. USD 196 mn) agreement to supply spare parts to Ceer last August. Under the agreement, Hyundai Kefico will supply Ceer with vehicle control units — the travel computers which realize the control decisions of electric vehicles — and EV traction inverters, which transform direct current supply from EV batteries into an alternating current output.

Ceer’s EV complex is also underway: The company awarded a SAR 5 bn (USD 1.3 bn) construction contract for its electric vehicle complex to local contractor Modern Building Leaders in March. The complex is set to be completed in two years with an estimated capacity of multiples of 100k vehicles.

About Ceer: Ceer — a JV between the Public Investment Fund and Taiwanese multinational electronics contract manufacturer Hon Hai Precision Industry Company (Foxconn) — launched in 2022 as KSA’s first national electric vehicle brand. The EV company is expected to contribute USD 8 bn to GDP by 2034 and to be a magnet for more than USD 150 mn in foreign direct investment. Ceer’s EVs are expected to hit the market in 2025. It will license component technology from BMW in the development process.