Saudi Arabia, Chinese Firm Sign EV Investment Agreement

The Saudi Arabian Ministry of Investment signs a $5.6 billion investment agreement with Chinese automotive and mobility company Human Horizons in a move that will see the two collaborate on the development, manufacture and sale of electric vehicles.

The agreement, made official at an Arab-China business conference in Riyadh, is among the largest investments by Saudi Arabia’s Public Investment Fund, which is tasked with driving the country’s strategy to reduce its reliance on oil for revenue.

The investment agreement encompasses plans to develop a domestic Saudi Arabian EV manufacturing industry. Human Horizons is the parent company of Chinese automaker HiPhi, a premium EV brand.

Saudi Arabia’s investment in Human Horizons comes after an earlier deal which saw it take a 60% stake in Lucid Motors for a claimed $1.8 billion.

Human Horizons was founded in 2017 by Chinese automotive entrepreneur Ding Lei, former deputy governor of the Pudong New District of Shanghai.

Lei, also a former president of Shanghai General Motors, is the CEO of Human Horizons-owned HiPhi, the Shanghai-based automaker launched in 2019.

HiPhi’s current models include the upmarket X MPV, Z sedan and recently revealed Y midsize SUV.