Chinese EV start-up Enovate to build plant in Saudi Arabia as President Xi’s visit to Riyadh begins to pay off

The plant, to be built with Saudi joint-venture partner Sumou, will cost about US$500 million and have a capacity of 100,000 cars a year

Enovate, founded by Chinese entrepreneur Zhang Hailiang in 2015, has a plant in Shaoxing city, Zhejiang province

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Enovate Motors’ ME-S sedan. The Chinese electric vehicle start-up has signed a deal to open a plant in Saudi Arabia. Photo: Handout

Published: 7:30am, 13 Dec 2022

Enovate Motors, a Chinese electric vehicle (EV) start-up, plans to build a factory in Saudi Arabia, following a state visit by President Xi Jinping to the kingdom.

The carmaker, which counts Shanghai Electric Group as an early investor, said on Monday that it had signed an agreement with Saudi Arabian authorities and joint-venture partner Sumou to set up an EV plant with an annual capacity of 100,000 units.

The factory, which will include a research and development centre, will cost about US$500 million, Enovate said in a statement.

The deal was signed last Wednesday, a day before Xi’s meeting with King Salman bin Abdulaziz in Riyadh. It is among the 34 energy and investment deals signed during Xi’s visit to Saudi Arabia between December 7 and 10, which are aimed at strengthening strategic partnerships between the two nations.

Chinese President Xi Jinping met Saudi Crown Prince Mohammed bin Salman during his visit to the kingdom last week. Photo: SPA/AFP

Not all the deals were made public, but the Saudi Press Agency reported that Chinese and Saudi Arabian companies signed dozens of agreements covering green energy, information technology, infrastructure and health.

Enovate said the deal could pave the way for it to tap the financial strength of Saudi investors, including the country’s sovereign wealth fund and Saudi Aramco, the world’s largest oil production company.