RIYADH: A rapid decline in battery prices and critical mineral costs, along with effective government initiatives, are expected to help Saudi Arabia achieve its goal of electrifying 30 percent of vehicles in Riyadh by 2030, according to experts.

Joseph Salem, partner and travel, transportation, and hospitality practice lead at Arthur D.

Little, Middle East, stated that the Kingdom needs to deploy at least 1.5 million electric vehicles by 2030 to meet this target.

Known for its oil wealth, Saudi Arabia has been leading the region's energy transition and is now focused on developing a comprehensive EV ecosystem.

The nation has invested in US-based EV manufacturer Lucid through the Kingdom's sovereign wealth fund, as well as creating its homegrown electric vehicle brand Ceer, which is expected to roll out vehicles by 2026.

Battery cost reduction serves as a key enabler for Saudi Arabia to achieve its EV adoption targets and build a competitive regional automotive industry, reinforced by the broader global trend of declining battery prices.

The Kingdom is also expanding its EV infrastructure, aiming to have 5,000 fast chargers nationwide by 2030, making adoption more practical for consumers.

Experts praised recent innovations in Saudi Arabia, including a new lithium extraction technique developed by King Abdullah University of Science and Technology.

This technology could reduce costs for Saudi as well as other battery makers.

China produces over three-quarters of all batteries sold globally, but the dominance of the Chinese battery industry will not last forever.

The Kingdom's lithium extraction technology, if combined with the right ecosystem, could offer a chance to reduce reliance on China for selected components and materials, strengthening local supply chains.