Hyundai Transys seals $2.2 billion EV parts deal with Saudi Arabia's CEER

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Hyundai Transys seals $2.2 billion EV parts deal with Saudi Arabia's CEER

Published: 12 Jun. 2024, 14:58

SARAH CHEA
chea.sarah@joongang.co.kr

Hyundai Transys CEO Steve Yeo, left, shakes hands with CEER CEO James DeLuca after signing a $2.2 billion EV parts deal at the company's headquarters in Hwaseong, Gyeonggi. [HYUNDAI TRANSYS]

Hyundai Transys sealed a 3 trillion won ($2.2 billion) deal with CEER, a Saudi Arabian EV maker, to supply its EV drivetrain system, the Korean auto parts maker said Wednesday.

It's the first time Hyundai Transys will supply its EV driving systems to an automaker other than Hyundai Motor and Kia.

The parts maker's so-called three-in-one EV drive system combines a motor required to drive the EV, an inverter and a reduction gear to cut costs and improve efficiency when converting power to control the motor's torque.

Traditionally, EV driving systems with separate motors and inverters cause a loss in power when connecting cables.

The supply deal will run from 10 years starting in 2027.

Established by Saudi Arabia's Public Investment Fund, CEER will use the drive systems in its upcoming EV lineup, which includes SUVs, sedans and coupe models.

"Based on our unrivaled technological prowess in powertrains, we will endeavor to expand our electrification parts business in global markets," said Steve Yeo, CEO of Hyundai Transys.

The Saudi Arabian government aims for 30 percent of the cars on its roads to be electric by 2030, with a goal of only allowing EVs in its mega-scale smart NEOM city, which is also scheduled to be completed in 2030.

Hyundai Transys, 41 percent owned by Hyundai Motor, is an auto parts maker specializing in powertrain and seats. Its latest focus is on luring global automakers as clients, as 80 percent of its current sales come from Hyundai Motor and Kia.

It has manufacturing facilities in 11 countries including Korea, the United States, India, Germany and Brazil.

BY SARAH CHEA [chea.sarah@joongang.co.kr]