Lucid opened its first international EV factory in Saudi Arabia. A pact to advance Saudi Arabia’s push toward electrification saw electric car manufacturer Lucid Group (LCID.O) announce on Wednesday that it had launched its first overseas production facility in Jeddah.
Last year, Lucid revealed plans for the Jeddah facility and claimed that the kingdom had secured a contract with the business to purchase up to 100,000 vehicles over ten years.
Saudi Arabia’s national wealth fund, the largest stakeholder in Lucid, has spearheaded the country’s ambitious aim to diversify its economy away from oil while entering an EV market dominated by nations like China and the US.
The kingdom introduced its first electric vehicle (EV) brand, Ceer, in 2022 and invested $6 billion in a steel plate mill complex and an EV battery metals factory.
Leading company Tesla (TSLA.O) is allegedly in preliminary talks to establish a manufacturing facility in Saudi Arabia.
With an initial capacity of 5,000 units annually, Lucid’s AMP-2 plant in King Abdullah Economic City (KAEC) will build the premium electric vehicle Lucid Air.
In the future, the facility will be expanded to manufacture 155,000 units annually. Lucid’s other manufacturing plant is in Arizona, United States.
Saudi’s Public Investment Fund, which owns just over 60% of the EV company, agreed to invest $1.8 billion as part of Lucid’s private stock offering.
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