Construction has begun on Lucid Group’s first advanced electric vehicle (EV) manufacturing factory in Saudi Arabia.
Bringing what Lucid claims is the longest-range, fastest-charging electric car to the Middle East market, Lucid has signed agreements with the Ministry of Investment of Saudi Arabia (MISA); the Saudi Industrial Development Fund (SIDF); Emaar, The Economic City, at the King Abdullah Economic City (KAEC); and Gulf International Bank (GIB).
The agreements set the stage for the construction of Lucid’s AMP-2 (Advanced Manufacturing Plant #2), which once complete, will have a capacity of 155,000 electric vehicles.
The deals are also estimated to provide financing and incentives to Lucid of up to $3.4 billion in aggregate over the next 15 years to build and operate the manufacturing facility in Saudi Arabia.
The Saudi Minister of Investment, Eng Khalid bin Abdulaziz Al-Falih, said: “We are taking a major step towards Saudi Arabia’s goal of diversifying its economy by creating a new manufacturing hub to spearhead the future of mobility for the Middle East region.
“Attracting a global leader in electric vehicles such as Lucid to open its first international manufacturing plant in Saudi Arabia reflects our commitment to creating long-term economic value in a sustainable, enduring, and globally integrated way.
Al-Falih added: “This project demonstrates the confidence that investors have in Saudi Arabia’s competitiveness, its ability to create opportunity, and serve global demand for a highly complex product such as electric vehicles.”
“The Lucid factory also reflects the kingdom’s global commitment to promoting the green economy and reducing carbon emissions.”
Lucid reviewed multiple opportunities before selecting KAEC in Saudi Arabia, an area known for its livability and sustainability, as the optimal location for the second of its global network of electric vehicle manufacturing facilities, the firm said in a statement.
The factory will be situated in KAEC’s ‘Industrial Valley,’ close to the King Abdullah Port along the main Red Sea trading corridor, an area which has handled more than a third of Saudi Arabia’s Western Region container volumes.
Lucid’s Middle East regional headquarters in Riyadh has been operational since last year.
The Minister of Industry and Mineral Resources and the chairman of the Saudi Industrial Development Fund (SIDF), Bandar Alkhorayef, stated that the automotive industry in the kingdom is one of the most important sectors supported by the National Industrial Strategy (NIS).
He added: “We look forward to working with Lucid and other leading companies, while continuing to build our global expertise.”
The Saudi Public Investment Fund’s (PIF’s) deputy governor and the head of its International Investments Division, Turqi Al-Nowaiser, said: “PIF partners with leading global innovators, like Lucid, to shape the economies of the future and drive the economic transformation of Saudi Arabia in line with Saudi Vision 2030.”
At AMP-2, Lucid plans to establish operations initially for re-assembly of Lucid Air vehicle “kits” that are pre-manufactured at the company’s US AMP-1 facility in Casa Grande, Arizona, and, over time, for production of complete vehicles.
Vehicles will be initially slated for the Saudi Arabian market, but Lucid plans to export finished vehicles to other global markets, as well.
In addition, Middle East regional deliveries of the Lucid Air are expected to begin later this year, supported from the Casa Grande factory.
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