Saudi Arabia’s Riwaq Industrial Development Company will also be part of the jv that will build what is being touted as one of the world’s biggest utility-scale battery factories

The battery plant with a capacity of 3 GWh annually, planned to start up in 2021, marks a milestone for Saudi Arabia in its quest to localize manufacturing for technologies in emerging industries, said Fuad Mosa, CEO of Nusaned Investment.

SABIC said the new company will produce energy storage systems for use alongside utility-scale renewables projects, telecom towers, mining sites, remote cities and off-grid locations.

The Kingdom’s drive to install 57.5 GW of renewable capacity by 2030, which reflects  Saudi Arabia’s plans to diversify away from oil, has spurred demand for new battery storage capacity.

Aramco-SABIC deal set to close soon

In other news, Saudi Aramco’s acquisition of a 70% stake in SABIC from the Saudi Public Investment Fund (PIF) is on track to close in the second quarter, the state oil giant told the Reuters news agency.

Aramco’s comment came in response to a Reuters story saying it was looking to restructure the deal after SABIC’s value dropped more than 40% due to the coronavirus pandemic-related oil price slump.

“All necessary regulatory clearances have been obtained. An announcement will be made in due course,” Aramco said.