In a significant stride towards bolstering Saudi Arabia’s electrification initiative, Lucid Group, a prominent electric vehicle (EV) manufacturer, officially launched its inaugural international manufacturing facility in Jeddah City, Saudi Arabia. This expansion is part of a strategic agreement to advance the Middle Eastern nation’s efforts to embrace electric mobility.
Lucid had initially revealed its intentions to establish a manufacturing plant in Jeddah the previous year, concurrently announcing a procurement commitment from Saudi Arabia for up to 100,000 vehicles over a decade. Notably, the Kingdom’s sovereign wealth fund, a major stakeholder in Lucid, spearheads the ambitious drive to diversify its revenue streams and reduce reliance on traditional oil-based income. This move places Saudi Arabia within the global arena of EV production, a sector traditionally dominated by countries such as China and the United States.
Saudi Arabia has made substantial strides in electric vehicles by introducing its premier EV brand, Ceer, in 2022. Additionally, the country disclosed substantial investments of $6 billion earmarked for developing a steel plate mill complex and an EV battery metals plant. In parallel, industry leader Tesla is reportedly in the early stages of negotiations to establish its manufacturing plant in Saudi Arabia. Lucid’s newly unveiled AMP-2 facility, situated in the King Abdullah Economic City (KAEC), will serve as the production hub for the luxury electric sedan Lucid Air. The plant will commence operations with an initial annual production capacity of 5,000 units, with plans to scale up to an impressive 155,000 units annually. This expansion complements Lucid’s existing manufacturing plant located in Arizona, United States.
Saudi Arabia’s Public Investment Fund, the majority shareholder in Lucid Group holding just over 60% of the company’s shares, underscored its commitment to the EV manufacturer by investing $1.8 billion in a private stock offering in May, further solidifying the partnership and fostering continued growth in the electric vehicle sector.
