The Saudi Arabia battery market is expanding rapidly as the Kingdom pursues an ambitious dual strategy of localizing electric vehicle supply chains and deploying grid scale battery energy storage systems under Vision 2030. Saudi Arabia battery market size reached USD 1,401.8 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 2,910.3 Million by 2034, exhibiting a growth rate (CAGR) of 8.46% during 2026-2034. Government backed entities, including the Saudi Electricity Company, the Saudi Power Procurement Company, and the Public Investment Fund, are driving a pipeline of projects spanning lithium chemical processing, battery cell manufacturing, and utility scale storage that is repositioning the Kingdom as an emerging Middle East hub for battery technology and clean energy storage.
How AI is Reshaping the Future of Saudi Arabia Battery Market
- AI powered grid management platforms are helping the Saudi Electricity Company optimize charge and discharge cycles across its expanding battery energy storage fleet, improving renewable energy integration as the Kingdom works toward generating half of its electricity from renewables.
- Machine learning driven predictive maintenance is being applied across large scale battery energy storage system installations to reduce downtime and extend asset life at multi gigawatt hour facilities being developed across Riyadh, Qaisumah, Dawadmi, Al Jouf, and Rabigh.
- AI assisted feasibility and resource modelling is supporting the Saudi Arabian Mining Company in its exploration of lithium bearing brine deposits, accelerating decisions on refinery design and precursor plant configuration.
- Battery cell and equipment manufacturers entering the Saudi market are using AI driven quality inspection on electrode coating and cell assembly lines to meet the precision standards required for lithium ion and next generation solid state and sodium ion chemistries.
- AI powered demand forecasting tools are being used by battery equipment suppliers and industrial conglomerates to plan capacity build out in phases, aligning production ramp up with the Kingdom’s staged gigafactory development waves.
Grab a sample PDF of this report: https://www.imarcgroup.com/saudi-arabia-battery-market/requestsample
Market Growth Factors
Grid scale battery energy storage deployment is the most visible driver of the Saudi Arabia battery market at present. The Saudi Electricity Company has contracted a combined 15.1 gigawatt hours of battery energy storage capacity with China’s BYD Energy Storage across projects in Riyadh, Qaisumah, Dawadmi, Al Jouf, and Rabigh, each site hosting a 500 megawatt and 2,500 megawatt hour installation. This builds on an earlier 2.6 gigawatt hour project delivered by a consortium led by State Grid Corporation of China and local firm Alfanar Projects, alongside a separate 7.8 gigawatt hour agreement signed with Sungrow. The Kingdom is targeting 48 gigawatt hours of battery storage capacity by 2030, with roughly 26 gigawatt hours of projects already signed, positioning Saudi Arabia as the third largest global energy storage market behind China and the United States.
Independent procurement mechanisms are widening the base of private investment in the sector. The Saudi Power Procurement Company shortlisted 33 prequalified bidders, including Masdar, ACWA Power, EDF, TotalEnergies, Samsung, and several Chinese state owned power groups, for a 2 gigawatt and 8 gigawatt hour build own operate battery storage tender spanning four sites in Makkah, Qassim, and Hail provinces, under 15 year storage service contracts. Industrial tracking firms currently follow 17 battery energy storage projects across the Kingdom worth more than USD 14 billion, reflecting the scale of capital being committed to this single sub-segment of the battery market.
Upstream battery materials investment is building the foundation for a domestic electric vehicle battery supply chain. Australia based EV Metals Group secured a 127 hectare site in Yanbu Industrial City through its EVM Arabia subsidiary to construct a battery chemicals complex, including a lithium chemicals plant targeting 50,000 tons per year of lithium hydroxide monohydrate, scaling toward 150,000 tons annually, alongside a nickel chemicals plant designed for 300,000 tons per year of nickel sulphate. Separately, the Saudi Arabian Mining Company, known as Ma’aden, is advancing feasibility studies for a lithium hydroxide refinery and a nickel cobalt precursor processing plant using brine resources from the Salman area, with a pilot scale precursor cathode active material line targeted for commissioning. State linked investment vehicle Manara Minerals, a joint venture between Ma’aden and the Public Investment Fund, has also been evaluating lithium extraction opportunities in Chile to secure feedstock for future domestic processing.
Market Segmentation
Type Insights:
- Lithium Ion Batteries
- Lead Acid Batteries
- Solid State and Sodium Ion Batteries
- Nickel Based Batteries
Application Insights:
- Energy Storage Systems
- Electric Vehicles
- Consumer Electronics
- Industrial and Telecom Backup
End User Insights:
- Utilities and Power Producers
- Automotive Manufacturers
- Industrial and Commercial Facilities
- Residential Users
Regional Insights:
- Riyadh Region
- Makkah Region
- Eastern Province
- Madinah Region (Yanbu, NEOM)
- Others
Energy storage systems represent the largest application segment, supported by government backed grid projects, while the Eastern Province and Madinah Region are emerging as manufacturing and processing hubs given their proximity to Yanbu Industrial City and Ras Al Khair.
Recent Development and News
- January 2025: The Saudi Power Procurement Company announced 33 prequalified bidders, including Masdar, ACWA Power, EDF, TotalEnergies, and Samsung, for a 2 gigawatt and 8 gigawatt hour battery energy storage tender structured as a build own operate model across four sites in Makkah, Qassim, and Hail provinces.
- February 2025: The Saudi Power Procurement Company held a bidders conference and scheduled site visits for the first phase independent storage provider projects, confirming four 500 megawatt battery storage sites at Al Muwyah, Haden, Al Khushaybi, and Al Kahafa.
- March 2025: The Saudi Electricity Company partnered with China’s BYD Energy Storage on a 12.5 gigawatt hour battery energy storage contract, taking their combined collaboration to 15.1 gigawatt hours and creating what has been described as the world’s largest grid scale battery storage project.
- March 2025: Industrial tracking data confirmed the Saudi Electricity Company had commissioned a 500 megawatt and 2,000 megawatt hour battery energy storage facility in Bisha, with eight further large scale standalone battery storage projects totaling 4.5 gigawatts and 20.3 gigawatt hours under development through major engineering, procurement, and construction contractors.
If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
About Us
IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
Contact Us
IMARC Group,
134 N 4th St. Brooklyn, NY 11249, USA,
Email: sales@imarcgroup.com,
Tel No: (D) +91 120 433 0800,
United States: +1-201971-6302
