Lucid Group, the prominent electric vehicle (EV) manufacturer, has taken a significant stride in its global expansion by inaugurating its inaugural international manufacturing facility in Saudi Arabia's vibrant city of Jeddah. This move is part of a strategic agreement aimed at bolstering Saudi Arabia's ambitious efforts to embrace electrification.
Lucid's plans for the Jeddah manufacturing plant were unveiled last year, marking a pivotal moment in the Middle Eastern country's pursuit of electric mobility. Saudi Arabia committed to procuring up to 100,000 vehicles from Lucid over the next decade as a testament to their commitment to electric transportation.
The driving force behind Saudi Arabia's electrification agenda is its sovereign wealth fund, which also happens to be Lucid's largest shareholder. This initiative is a pivotal component of the kingdom's overarching strategy to diversify its revenue streams and reduce its dependence on oil, venturing into the EV industry arena, which is predominantly dominated by China and the United States.
In 2022, Saudi Arabia made significant strides in the EV sector with the launch of its very own EV brand, Ceer. Additionally, the kingdom announced a substantial $6 billion investment to establish a steel plate mill complex and an EV battery metals plant.
Tesla, the renowned industry leader in electric vehicles, is reportedly exploring early discussions to establish its own manufacturing plant within Saudi Arabia, further underscoring the country's attractiveness as an EV hub.
The newly inaugurated AMP-2 facility, strategically located in the King Abdullah Economic City (KAEC), will serve as the assembly site for Lucid's luxurious electric sedan, the Lucid Air. Initially, the facility is set to produce 5,000 units annually, with ambitious plans for future expansion, targeting an annual production capacity of 155,000 units. Lucid's existing manufacturing plant is based in Arizona, United States.
Saudi Arabia's Public Investment Fund, holding a substantial stake of just over 60% in Lucid, demonstrated its commitment to the company by agreeing to invest $1.8 billion as part of Lucid's private stock offering in May.
Lucid Group's foray into Saudi Arabia's growing EV landscape not only solidifies the kingdom's position in the global electrification arena but also signifies a significant milestone for Lucid as it continues to make waves in the international EV market.