American electric vehicle startup Lucid proudly announced on Wednesday the successful launch of its first production plant in the Kingdom of Saudi Arabia.
“With the support of the Saudi government, we are proud to drive local development in the technology industry. We look forward to delivering Saudi-assembled cars to customers in Saudi Arabia and beyond.”
Lucid CEO Peter Rawlinson said in a statement
The new electric vehicle plant marks the company’s first international facility beyond its home market, the US.
About the EV factory
Lucid’s Saudi Arabian vehicle factory is a major part of the deal between Lucid and the kingdom to expand the country’s electric vehicle industry.
Reuters reported that the AMP-2 factory is located in King Abdullah Economic City (KAEC). It aims to produce the popular Lucid Air luxury EV with an annual production output of 5,000 units.
The later phase of production will see the factory ramp up to an annual output of 155,000 units, according to the report.
However, it must be noted that Lucid will initially import disassembled units in the country and re-assemble them in the AMP-2 factory. It aims to kick off the actual and complete production “after the middle of the decade.”
Lucid announced last year that the kingdom will acquire a maximum of 100,000 units of its EVs in a 10-year period.
Notably, the AMP-2 factory is the company’s second site after the AMP-1 in Arizona, US.
Lucid’s venture in the kingdom
Lucid initially disclosed that it would erect its first international production hub in Saudi Arabia in March 2022.
It is unsurprising, considering that it is part of the company’s agreement with the Saudi Arabia Public Investment Fund (PIF).
For context, PIF holds a stake of more than 60% in Lucid. It confirmed plans to allocate $1.8 billion as a private stock offering in May.
Lucid has also penetrated the kingdom with the deliveries of its luxury model Air in June this year.
Teslarati noted that the Saudi Arabian plant could potentially boost Lucid’s valuation to about $3.4 billion in the following 15 years.
Moreover, the kingdom also committed to buying 100,000 EVs from the American automaker for the government fleet in ten years. The first phase of the agreement will see Lucid supplying 50,000 EVs to the kingdom. The remaining 50,000 units will follow sometime in the given period.
“The opening of our facility today marks the beginning of our production operations to assemble our world class Lucid Air. AMP-2 in KAEC, in addition to our existing AMP-1 facility in Arizona, gives us the ability to efficiently fulfill the recently signed agreement with the government of Saudi Arabia to purchase up to 100,000 vehicles over a ten-year period, with an initial commitment to purchase 50,000 vehicles and an option to purchase up to an additional 50,000 vehicles over the same period.”
Faisal Sultan, Lucid Group’s Vice President and Managing Director Middle East
See Also:
- Lucid Group raises $1.5 billion from the Saudi public wealth fund and other investors
- Lucid opens its first Middle East studio in Riyadh, Saudi Arabia
- Minister says Saudi Arabia will manufacture and export over 150,000 electric cars through Lucid Motors in 2026
- Lucid to receive a $3.4 billion incentive for its Saudi Arabia plant
- Lucid Group and Saudi Arabia announce 100,000 EV fleet deal
Saudi Arabia aims to have electric vehicles account for 30% of its new car sales by 2030. The move is part of the kingdom’s effort to catch up in the rapidly growing market amid the declining demand for oil. Lucid’s factory will undoubtedly aid the country in achieving the 2030 target and promoting the shift to clean mobility.
