RIYADH: Saudi Arabia’s SNB Capital has agreed to invest $100 million in South Korean firm SK On as the car battery manufacturer plans to double its production capacity. The amount was acquired through the National Capital Fund for electric vehicle batteries, according to a company statement. Even though the value of the acquisition was revealed, the company did not disclose the size of the stake. SK On, one of the largest EV battery manufacturers worldwide, plans to use the proceeds to fund its expansion plan and double its production capacity. Part of the funds will also be allocated toward research and development, the company said. “This investment highlights SNB Capital’s unwavering commitment to enriching its clients’ portfolios with niche, quality and geographically diverse investment options, to take part in the sustainable transportation and green energy sector,” said Khaled Al-Braikan, head of asset management at SNB Capital. He added: “We remain active in our pursuit of unlocking new investment avenues for growth that meet our client’s requirements.” SK supplies batteries to a wide range of car makers such as Ford, Hyundai, Volkswagen and Mercedes-Benz through its factories across Asia, Europe, and America. The Kingdom which has set a target of producing about 300,000 cars by 2030 aims to account for 50 percent of car sales in the Gulf Cooperation Council countries by 2025. Currently, out of the 1.15 million cars that are sold in Saudi Arabia, 62,000 are EVs, as the Kingdom continues to strive toward developing a sustainable automotive industry. The demand for EVs is expected to increase 10 times by 2030, with annual sales estimated at $330 billion. Electric cars are projected to account for between 5 and 7 percent of the growth in the Kingdom, according to the National Center for Industrial Development. Moreover, Saudi Arabia has ambitious goals to achieve 45 percent clean mobility and 25 percent autonomous mobility penetration by 2030. That said, the Kingdom has been increasing its focus on the EV industry, with the Public Investment Fund investing heavily in electric car maker Lucid. “Saudi Arabia is acknowledging the ongoing shift in the automobile industry and is proactively planning for a better future,” Managing Director and VP of Lucid Middle East Faisal Sultan told Arab News in April this year.