Battery Blueprint: Saudi Arabia’s Strategic Foray into the Battery Value Chain

Abstract

This thesis evaluates Saudi Arabia’s potential to establish a foothold in the global battery industry, an industry that would be pivotal for its energy transition and economic diversification goals. Key enablers such as Saudi Arabia’s commitment to renewable energy and industrial growth in adjacent sectors, including automotive and refinery, provide a foundation for entry into the battery value chain. However, the Kingdom must navigate barriers such as market competition and the need for technological expertise in advanced battery production, a market led by heavyweights like China and innovators across the globe. This study assesses the viability of a bottom-up technology catch-up approach for industrial competency in battery technology—a contrast to the top-down models employed by established players. The research comprises an in-depth analysis of enablers and barriers for technology catch-up utilizing a proposed assessment framework, and strategies for effectively localizing different parts of the battery value chain. The outcome aims to offer a strategic blueprint for Saudi Arabia to capitalize on the burgeoning demand for battery technology and enhance its global economic stature.