Putting Saudi Arabia in the driver’s seat for the future of green mobility

The role of green mobility in NEOM’s future vision for urban living. Spearheaded by Saudi Arabia’s Public Investment Fund, NEOM is a futuristic high-tech project designed to harness technology, sustainability and business for a new planned city in Saudi Arabia. It is part of efforts to diversify Saudi Arabia’s economy. A sustainable and connected mobility ecosystem is an important part of the vision. In this guest article, Michel Ladrak, Head of Mobility, NEOM, describes the NEOM vision of future green mobility. The severe wildfires that California has been experiencing recently have added further fuel to claims that climate change is increasing this annual devastation. Of the 20 largest fires in California’s history, eight have occurred in the past three years1 and with the fires starting earlier and finishing later, California’s wildfire season is becoming an almost year–round event2 . With the transport sector responsible for approximately a quarter of all greenhouse gas emissions, it is certainly implicated in the climate change issues we are witnessing. Transport derives 95% of its energy from fossil fuels3 and although the number of electric vehicles (EVs) on the world’s roads is growing, figures show that sales have recently slowed4. Several factors for this have been identified, including concerns about EV resale values, fears about changes in government policy for electric vehicles, and worries over a lack of rapid-charging infrastructure5. Norway is one country that is bucking this trend. The Scandinavian nation’s EV sales have continued to remain strong, with these vehicles accounting for nine out of 10 new passenger car sales in 20246 . This has been achieved through generous government subsidies, investment in infrastructure and incentives for day-to-day driving, such as free parking, free charging, congestion charge exemption and permission for EVs to use bus lanes. It is also noteworthy that the country has embraced the future of electric transport despite its wealth of oil and gas natural resources, which it could easily put to domestic use if it chose to. Saudi Arabia, once known for fueling the world’s internal combustion engine vehicles, is now poised to lead the global transition away from fossil fuel-based transport. While Norway has been able to tap into its renewable hydroelectricity, which accounts for 88% of its energy production7, Saudi Arabia similarly enjoys an abundance of renewable energy derived from the sun, with solar power having the capacity to meet all the country’s energy needs8. Thanks to its commitment to green mobility, Saudi Arabia has the potential to not only transition its domestic sector away from fossil fuels as Norway has done, but to accelerate the global shift towards delivering sustainability, in the process becoming a world leader for sustainable transport. Under Saudi Vision 2030, the Kingdom is creating a comprehensive EV ecosystem underwritten by favorable policies for EV adoption and significant investments in EV infrastructure. The Kingdom has already established its first automotive brand, Ceer, to design, manufacture and sell electric vehicles9 and in early 2025, the company signed USD 1.4 billion worth of deals at a PIF event to support the launch of its first model, which is scheduled for 202610. The establishment of Ceer follows the 2023 opening of a Lucid Group car factory at Saudi Arabia’s King Abdullah Economic City, Jeddah – the country’s first-ever car manufacturing facility and Lucid Group’s first international plant. The site will produce Lucid’s electric vehicles for Saudi Arabia’s domestic market, as well as for export11. NEOM’s Mobility sector is playing its role in helping the Kingdom meet its sustainable transport sector objectives and is developing a fully sustainable mobility ecosystem for its range of developments. These include the linear city THE LINE, the mountain retreat Trojena, the coastal region of Magna, and the port and manufacturing center, Oxagon. Unlike most cities, which are retrofitting infrastructure for new technology and vehicles, NEOM is designing a new mobility paradigm from the ground up. NEOM has made significant progress in developing its charging infrastructure, which will support the incorporation of EVs into our shared public transport system. The sector has installed charging stations in six areas across the region as part of its long-term plan to offer full connectivity across NEOM. These new stations support the expanded use of its EV fleet, which, with around 140 electric vehicles for use by the NEOM community members, is the largest electric vehicle fleet in the Kingdom. More charging stations are in the pipeline and will be progressively rolled out as Mobility’s network grows. While electrification of infrastructure and vehicles is an essential element in delivering sustainable mobility, it is far from being the sole component. NEOM’s Mobility strategy is prioritizing shared mobility and automation as fundamental pillars of its future transport model. Shared mobility reduces congestion, enhances accessibility and decreases the environmental footprint of transportation. By integrating on-demand shuttles, autonomous taxis, and app-based ridesharing, NEOM can create a seamless, multimodal transport system that is both efficient, comfortable and better for the future of the region and indeed, our planet. Within the next decade, cities which have not embraced autonomous transport will be gridlocked, inefficient and economically disadvantaged. NEOM is showing the world how to avoid this fate. Autonomous electric shuttles and ride-sharing fleets can operate at peak efficiency, minimizing energy waste and improving overall user experience. NEOM’s partnership with Pony.ai—one of the world’s leaders in autonomous driving technology—has resulted in Saudi Arabia’s first permit for autonomous vehicle testing, marking a significant milestone in the Kingdom’s mobility transformation. Finally, we need to state the importance of hydrogen as a growing source of clean energy and an increasingly significant aspect of green mobility. Hydrogen fuel cells provide a sustainable alternative for heavy-duty transport where battery-electric solutions may not be as practical due to weight and range limitations. Hydrogen-powered vehicles play a crucial role in NEOM Mobility’s ecosystem and I see it playing a much more important role as a fuel for transport moving forward, particularly with construction vehicles. Off-highway hydrogen vehicle applications confer the advantages of not only zero emissions but also reduced noise on…

How US tariffs on China will disrupt the EV market

As tensions between the US and China continue to shape global trade, tariffs have become a central weapon in their economic standoff. Tariffs are essentially taxes or duties imposed by a government on goods and services imported into, and exported out of, a country. As China imposes new export restrictions on certain grades of graphite, a critical material in electric vehicle (EV) batteries, the US faces increasing pressure to secure its supply chain. These tariffs come at a pivotal moment for the US, just as federal incentives and private investments are driving a nationwide push to expand EV production and battery manufacturing. Graphite is essential for lithium-ion battery anodes, and China currently dominates both mining and refining of graphite, controlling over 60% of global supply and more than 90% of processing capacity. With export controls now in place, US automakers and battery manufacturers are confronting a potential shortfall of this vital material, threatening production schedules and cost structures. Short-term consequences In the immediate future, the tariffs are likely to create bottlenecks and drive up prices for battery-grade graphite. Companies such as Tesla, GM, and Ford may be forced to navigate higher input costs, which could ripple through to vehicle pricing and manufacturing timeliness. With many EV battery plants under construction or scaling up in the US, this supply pressure could complicate efforts to meet federal targets for EV adoption. EVs already face affordability challenges for many consumers, and any rise in production costs could slow down adoption, particularly in the mid and entry-level market segments. Automakers such as GM, Ford, and Stellantis report significant margin pressure. GM is targeting 30% of tariff costs through capacity reallocation and pricing strategies. Battery producers and retailers are diversifying supply. For example, Batteries Plus cut its China sourcing from 32% in 2018 to 4%, adding the US, Vietnam, and Malaysia as suppliers. Graphite producers outside China, like Syrah Resources and Nouveau Monde, saw stock surges up to 22–26% due to new US duties. How the US government may respond In response, the US Commerce Department imposed a 93.5% tariff on anode-grade graphite imports from China, effective on materials with a minimum carbon purity of 90%, whether synthetic, natural, or blended. This case was initiated in December 2024 by the American Active Anode Material Producers, a coalition of US graphite companies, including Anovion, Syrah, Novonic, and Epsilon. This action has escalated US-China trade tensions, particularly in the critical minerals sector that is essential for electric vehicles. While US producers may gain domestic advantages from this tariff, graphite-dependent industries, especially EV battery manufacturers, are advocating for exemptions and seeking alternative sources. The US is also intensifying efforts on multiple fronts to secure a more resilient supply of graphite. Domestic mining and processing projects in states like Alaska and Alabama are receiving increased attention and investment to extract and process natural graphite. While these initiatives are promising, permitting and development timelines indicate that significant supplies may still be several years away. To diversify sourcing and reduce reliance on China, the US is deepening trade partnerships with graphite-producing countries such as Canada, Australia, and Mozambique. These collaborations align with broader clean energy trade policies.