Lucid Group Inc. to set up new standards with the longest range, fastest charging electric car on the market, today announced the signing of agreements with the Ministry of Investment of Saudi Arabia (“MISA”), the Saudi Industrial Development Fund (“SIDF”), and the Economic City at King Abdullah Economic City (“KAEC”), as it lays the groundwork for a full production factory in Saudi Arabia.
The agreements are expected to accelerate Saudi Arabia’s strategic goal to transform and diversify its economy through the development of sustainable energy and transportation. Lucid claims that the location of Lucid’s first international manufacturing plant in the Kingdom of Saudi Arabia may result in up to $3.4 billion of value to Lucid over 15 years, and the facility will enable Lucid to address the growing demand for Lucid’s products.
Peter Rawlinson, CEO, and CTO, Lucid Group stated: “Lucid aspires to be a catalyst for change wherever we go, so it makes perfect sense that we are bringing electric vehicles to one of the world’s biggest oil-producing nations. Establishing a global manufacturing footprint is a practical, natural step and enables us to grow our brand, scale our business, and address worldwide and untapped market demand on an entirely new level, while also taking action to address climate change through inspiring sustainable transportation.”
Mr. Rawlinson added: “Our strong relationships with the Public Investment Fund and our partners at MISA, KAEC, and SIDF also give us unique insight into the demand for luxury cars and SUVs in Saudi Arabia and beyond, and we are thrilled to introduce the world’s most advanced electric vehicles to more global markets.”
Lucid reviewed multiple opportunities before selecting KAEC in Saudi Arabia as the optimal location and opportunity for its first international manufacturing facility.
The new manufacturing hub will be fully owned by Lucid and enable the company to meet the growing international demand for luxury electric vehicles. Lucid also expects to benefit from the availability of competitively-priced commodities and energy and a newly emerging domestic supply chain, and a factory location that facilitates global logistics. The company further expects to be able to access financing to build and equip the manufacturing facility and train automotive workers.
According to Lucid’s anticipation, Saudi Arabia’s efforts to foster an automotive ecosystem through its Saudi Vision 2030 should yield cost savings for Lucid as well as environmental benefits, with reduced transportation of products to the customer. The project should also enable opportunities for Saudi Arabia to diversify and transition from fossil fuels to sustainable energy and transportation.
Lucid expects to employ several thousand people at its KAEC facility once full production capacity is established, the majority of which are expected to be Saudi Arabian citizens. Lucid has established an internship program with the PIF to provide educational opportunities and training for Saudi Arabian citizens at Lucid\’s facilities in California and Arizona to develop talent for operations in Saudi Arabia. The company, in addition, will build and run dedicated training centers in KAEC to support skills development for the workforce.
His Excellency Khalid Al-Falih, Minister of Investment of Saudi Arabia stated: “Today, we take a major step towards Saudi Arabia’s goal of diversifying its economy by creating a new manufacturing hub to spearhead the future of mobility for the Middle East region. Attracting a global leader in electric vehicles such as Lucid to open its first international manufacturing plant in Saudi Arabia reflects our commitment to creating long-term economic value in a sustainable, enduring, and globally integrated way. This project demonstrates the confidence investors have in Saudi Arabia’s competitiveness, its ability to create opportunity and serve global demand for a highly complex product such as electric vehicles.”
His Excellency Bandar Alkhorayef, Saudi Arabia’s Minister of Industry and Mineral Resources and Chairman of SIDF stated: “Establishing Lucid’s new manufacturing hub in the Kingdom of Saudi Arabia is aligned with our national priority of diversifying the economy, and more specifically in growing and diversifying the industrial sector as part of the Kingdom’s Vision 2030 and The National Industrial Development & Logistics Program.”
His Excellency added: “We are proud to partner with Lucid to enable this new industry in Saudi Arabia, which is one of the future’s most complex and technology-dependent industries, and a major contributor to the supply chain development of other related industries that intersect with auto manufacturing. We look forward to working with Lucid and other leading companies as we continue to build out our global competitiveness, relying on Saudi Arabia’s many qualitative advantages, starting with its proven human resources, its industrial capabilities, and it’s quality digital and physical infrastructure, to its advantageous geographical location in the region.”
Cyril Piaia, CEO of Emaar, The Economic City, the master developer of KAEC stated: “Lucid Group’s landmark decision to establish its first international plant in KAEC marks a significant milestone in our journey to become a leading-edge city with a world-class manufacturing and logistics hub. We are proud that KAEC will serve as a global launchpad for new sustainable mobility innovations such as electric vehicles, furthering its standing as a vision-ready platform that supports Saudi Vision 2030 objectives.”
“The U.S. government welcomes Saudi Arabia’s effort to diversify its economy and fight climate change,” said U.S. Chargé d’Affaires Martina Strong, the head of the U.S. Mission to the Kingdom of Saudi Arabia. “This announcement shows it can do both, through partnership and engagement with innovative American companies.”
