American luxury electric sports car brand Lucid has ventured into the Middle East by setting up its first international production facility in Saudi Arabia. With expansion into the Middle East the company has marked a new chapter in its global expansion strategy. This move from the company comes as part of a visionary agreement aimed at advancing Saudi Arabia’s commitment to electrification and reducing its dependence on oil revenue.
According to a report by a news agency Lucid has inaugurated its first international production facility outside of the USA in Jeddah, Saudi Arabia. This decision to establish a manufacturing facility in the heart of the Middle East reflects the growing importance of electric vehicles in the global automotive landscape. Last year, Lucid had revealed its plans for the Jeddah factory and the Kingdom of Saudi Arabia and Lucid entered into an agreement to procure up to 1,00,000 Lucid vehicles over the next decade.
One of the driving forces behind this bold initiative is Saudi Arabia’s sovereign wealth fund, a majority shareholder in Lucid Group. The fund has taken on the responsibility of steering the Kingdom’s determined efforts to diversify its economy and venture into the electric vehicle industry.
Saudi Arabia’s journey into the electric vehicle sector gained traction in 2022 when the Kingdom proudly launched its very own electric vehicle brand, Ceer. This announcement was accompanied by a substantial commitment of $6 billion in investments to establish a steel plate mill complex and an electric vehicle battery metals plant, signaling the nation’s dedication to building a robust EV infrastructure.
The report stated that Lucid’s state-of-the-art AMP-2 facility, strategically located in the King Abdullah Economic City (KAEC), will be responsible for assembling the luxurious Lucid Air electric sedan. Initially, the facility boasts a production capacity of 5,000 units annually, but plans are in place to scale up production significantly, with an eye on producing 1,55,000 units per annum in the foreseeable future. This addition complements Lucid’s existing manufacturing plant in Arizona, United States.
The Kingdom’s Public Investment Fund, which holds a controlling stake of just over 60 percent in Lucid Group, demonstrated its unwavering support for the company by committing a substantial $1.8 billion investment as part of Lucid’s private stock offering in May.
Lucid’s expansion into Saudi Arabia is not only a testament to the global appeal of electric vehicles but also a reflection of the Kingdom’s determination to play a prominent role in the rapidly evolving automotive industry. As electric mobility gains momentum worldwide, Lucid’s presence in Saudi Arabia serves as a beacon of innovation and a symbol of the nation’s commitment to a sustainable, electric future.
(With inputs from Reuters)
