Lucid Inaugurates First International EV Factory in Saudi Arabia

Lucid Stock

Lucid Group (NASDAQ:LCID), the electric vehicle manufacturer, has officially inaugurated its first international manufacturing facility in Jeddah, Saudi Arabia. This move is part of an agreement aimed at advancing Saudi Arabia’s commitment to electric mobility.

Lucid had previously unveiled plans for the Jeddah factory and disclosed that the Saudi government had entered into an agreement to purchase up to 100,000 vehicles from the company over a period of 10 years. Saudi Arabia’s sovereign wealth fund, which is also Lucid’s largest shareholder, is leading the charge in the kingdom’s ambitious efforts to reduce its dependence on oil revenue by venturing into the electric vehicle industry, a sector currently dominated by countries like China and the United States.

In 2022, Saudi Arabia launched its first EV brand, Ceer, and committed $6 billion in investments for a steel plate mill complex and an EV battery metals plant. Additionally, Tesla (TSLA.O), an industry leader in electric vehicles, is reportedly in preliminary discussions to establish its own manufacturing plant in Saudi Arabia.

Lucid’s new facility, known as AMP-2, is situated in King Abdullah Economic City (KAEC) and will be responsible for assembling the luxury electric sedan Lucid Air. Initially, the plant will have the capacity to produce 5,000 units annually, with plans to scale up production to 155,000 units per year in the future. Lucid’s other manufacturing plant is located in Arizona, United States.

Saudi Arabia’s Public Investment Fund, which holds just over 60% of Lucid’s ownership, had previously committed to investing $1.8 billion as part of Lucid’s private stock offering in May. This investment underscores the country’s significant interest and involvement in Lucid’s growth and expansion plans.

Featured Image: Megapixl

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