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.