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Accelerating Saudi Arabia’s strategic goal to diversify its economy and taking it a step closer to ensuring that 30% of new car sales in the kingdom are electric by 2030, American electric vehicle (EV) maker Lucid Group opened its first international manufacturing plant in Saudi Arabia via a deal to promote the kingdom’s push towards the EV industry dominated by countries like China and the US.
“As Saudi charges toward its Vision 2030, our facility will pave the way for the country’s electric automotive industry and the expansion of the supply chain, and with the support of the Saudi Government, we are proud to drive local talent development in the technology industry. We look forward to delivering Saudi-assembled cars to customers in Saudi Arabia and beyond,” said Peter Rawlinson, CEO and CTO of Lucid Group.
Lucid’s AMP-2 facility, located in King Abdullah Economic City (KAEC), will assemble the luxury electric sedan Lucid Air at a production capacity of 5,000 units a year. The site is also projected to produce 155,000 units per annum in the coming future.
The AMP-2 facility received significant support from the Ministry of Investment of Saudi Arabia (MISA), the Saudi Industrial Development Fund (SIDF), and the KAEC.
With original plans to launch the new Lucid factory in Jeddah last year, the country had signed an agreement to purchase up to 100,000 vehicles from the company for ten years.
The plant’s strategic location near Jeddah will also act as a catalyst to grow and expand the newly established domestic supply chain, creating demand for local suppliers and fostering long-term growth.
The Public Investment Fund (PIF), Saudi’s sovereign wealth fund, is Lucid’s largest shareholder, owning over 60% of the EV company, and has been tasked to drive the country’s plan to reduce reliance on oil.
In 2022, Saudi launched its first EV brand, Ceer, with $6 billion in investments for a steel plate mill complex and an EV battery metals plant.