Lucid Group, the electric vehicle maker, has announced the opening of its first international manufacturing plant in Jeddah, Saudi Arabia. This move is in line with Saudi Arabia’s efforts to promote electrification in the country. Under an agreement signed last year, the kingdom plans to purchase up to 100,000 vehicles from Lucid over the next decade.
Saudi Arabia’s sovereign wealth fund, which is also Lucid’s largest shareholder, is spearheading the nation’s ambitious plan to reduce dependence on oil revenue and establish a strong presence in the EV industry. This initiative comes at a time when countries like China and the United States have dominated the electric vehicle market.
The kingdom launched its own EV brand, Ceer, in 2022 and has committed $6 billion in investments for a steel plate mill complex and an EV battery metals plant. In addition, there are reports of Tesla being in early discussions to establish a manufacturing plant in Saudi Arabia.
Lucid’s new manufacturing facility, known as AMP-2, is located in King Abdullah Economic City (KAEC) and will initially have the capacity to produce 5,000 units of the luxury electric sedan, Lucid Air, per year. However, the site has the potential to scale up production to 155,000 units annually in the future. Lucid’s existing manufacturing plant is situated in Arizona, United States.
Saudi Arabia’s Public Investment Fund, which owns a majority stake of just over 60% in Lucid, recently invested $1.8 billion as part of Lucid’s private stock offering in May.
In conclusion, Lucid Group’s opening of its first international manufacturing plant in Saudi Arabia marks a significant milestone in the kingdom’s electrification drive. With ambitious plans and investments, Saudi Arabia aims to establish itself as a key player in the global electric vehicle industry.
