Saudi Arabia Lithium-ion Battery Market Report and Forecast 2032

Saudi Arabia Lithium-ion Battery Market Insights & Analysis

The Saudi Arabia Lithium-ion Battery Market is anticipated to register a CAGR of around 4.80% during the forecast period, i.e., 2025-32. Also, the market size was valued at nearly USD 2.8 million in 2024. The increasing need for energy storage systems across several industries & the nation's growing emphasis on sustainable energy solutions are driving the market's notable expansion. Lithium-ion batteries are essential for manufacturing electric vehicles (EVs), supporting renewable energy projects & industrial utilization as Saudi Arabia works toward its Vision 2030 that aims to diversify the country’s economy & letting down its reliance on oil.

Moreover, Saudi Arabia focuses to increase its infrastructure, tourism, automotive, and industrial sectors under the Vision 2030. Battery energy storage systems & electric vehicles are becoming more & more widespread in the kingdom as expansion will be done to achieve sustainability. In the coming years, the market is foreseen to be substantially influenced by the progress in lithium-ion battery technology. For example, the Obeikan Investment Group of Saudi Arabia and European Lithium, an Australian start-up, agreed on a deal in June 2023 to establish a lithium hydroxide refinery in the kingdom that can process nearly 3,160 tons of Li annually.

Saudi Arabia Lithium-ion Battery Market FY32

• Study Period: 2020- 2032


• Base Year: 2024


• CAGR(2025-2032): 4.80%


• Market Value 2024: USD 2.8 Million


• Major Players: Samsung SDI, LG Chem Ltd., Hitachi Chemical Co., Ltd., Johnson Controls International PLC, Panasonic Corporation, Tesla Inc., BYD Company, A124 Systems, and Others 

Furthermore, one of the primary aspect impelling Saudi Arabia Lithium-ion Battery Market is the move to electric automobiles. There is a strong effort to set up EV producing infrastructure in the country owing to the government's stress on renewable transportation. Nevertheless, the PIF has elevated its production target from nealry 150,000 EVs in 2026 to about 500,000 EVs by 2030. Also, Hyundai, a South Korean automaker, and the PIF have collaborated to build a Saudi Arabian auto plant that would produce roughly 50,000 cars by 2025.

Additionally, with a specific emphasis on solar energy, the country is swiftly growing its capacity for renewable energy. To store solar energy & uphold a steady supply of electricity, especially for the residential & commercial sectors, lithium-ion batteries are essential for energy storage systems. Hence, this supports Saudi Arabia's efforts to diminish its carbon footprint by managing the energy supply during off-peak production hours. Lithium-ion battery demand is increasing in consumer electronics & industrial equipment, in addition to electric vehicles & energy storage.

Also, rising industrial base & a youthful, tech-savvy populace in Saudi Arabia are fueling the deployment of lithium-ion batteries in power equipment, computers, and smartphones. Nevertheless, lithium-ion batteries would be essential to accomplishing the kingdom's initiative to reduce emissions & build a sustainable energy ecology. Hence, for the Saudi Arabian Lithium-ion Battery Market, this would therefore help to offer lucrative opportunities during 2025-32.

Saudi Arabia Lithium-ion Battery Market Dynamics

• Mounting Demand for EVs to Fuel the Market Growth

The Lithium-ion Battery Market in Saudi Arabia is witnessing an enormous demand owing to the rising demand for EVs. In an attempt to diminish its reliance on oil & its carbon emissions, the country is encouraging the usage of electric vehicles. This demand is consistent with the global push to switch to electric cars in an effort to fight climate change & pollution.

Additionally, the Saudi Public Investment Fund (PIF) is offering substantial investment for EV manufacturing sectors. Also, with the goal of generating close to 500,000 EVs by 2030, it launched Ceer, the first Saudi electric vehicle brand, in partnership with foreign producers. Further, the PIF established an automotive plant in collaboration with Hyundai to further proliferate EV output. Also, lithium-ion batteries would become more & more essential as EV production upsurges.

• Absence of Local Professionals & Skilled Labors to Hamper the Production

The manufacturing process of the lithium-ion batteries is complex and requires certain technical know-how & proficiency, both of which are currently lacking in Saudi Arabia. It's possible that the local labor lacks technical expertise in battery design, manufacturing, and quality assurance.

Moreover, making a trained workforce takes time, despite government investments in training initiatives & partnerships with foreign businesses to share knowledge. Also, the Saudi Arabia Lithium-ion Battery Market would face challenges in the future due to a delayed manufacturing ramp-up & dependence on foreign specialists owing to the lack of local experienced workers.

Saudi Arabia Lithium-ion Battery Market Segment-wise Analysis

By Cell Type:

• Polymer
• Cylindrical
• Prismatic

The Saudi Arabia Lithium-ion Battery Market is dominated by the Cylindrical Cell segment over the past years. Several individuals favor cylindrical lithium-ion batteries owing to their strong structure, high energy density, and cost-effectiveness. They are also more widely produced & mature, which makes them a popular option for a variety of uses, such as electric vehicles (EVs), power tools, and consumer electronics.

Also, for applications that need robustness & consistent performance, such EV battery packs & industrial applications, cylindrical cells provide greater mechanical stability & thermal control. Furthermore, due to their adaptability & flexibility with EV designs, cylindrical cells are predicted to continue to be in considerable demand as Saudi Arabia's EV manufacturing industry expands.

By End User:

• Consumer electronics
• Medical devices
• Energy Storage
• Automotive
• Industrial

The Automobile Industry is becoming more prevalent in the Saudi Arabia Lithium-ion Battery Market and is envisioned to account for the largest market share in the forecast years. The nation's strong emphasize for the acceptance of EVs as part of its Vision 2030 project, which strives to reduce reliance on oil & promote ecological transportation options, is the major driver of this upgrade. Also, through the Public Investment Fund (PIF), the Saudi government is spending heavily in the domestic EV market, which includes joint ventures with international manufacturers. Furthermore, the demand for high-capacity & effective lithium-ion batteries is being driven by the increasing EV infrastructure as well as government policies that support renewable energy & reduce emissions.

What Does Our Saudi Arabia Lithium-ion Battery Market Research Study Entail?

• Saudi Arabia Lithium-ion Battery Market Research Report highlights the forecast growth rate or CAGR by anticipating the market size & share.
• The market analysis puts light upon the primary industry trends, driving aspects, potential opportunities, growth challenges, and other major factors.
• Saudi Arabia Lithium-ion Battery Market Research Report entails details about the most critical shifts in market share in the prominent regions.
• Considering the statistics & the developments by the primary market competitors, our report also strives to demonstrate the most sought-after strategies of the key players.