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One of Lucid cars
The US electric car manufacturer, Lucid Group, inked agreements with the Saudi Ministry of Investment, Saudi Industrial Development Fund (SIDF) and King Abdullah Economic City (KAEC) to build a car manufacturing facility in the Kingdom, according to a company statement.
Lucid estimates that the location of its first international manufacturing plant in Saudi Arabia may result in up to $3.4 billion of value to the company over 15 years, and the facility will enable it to address growing demand for its products.
The new manufacturing hub in KAEC will be fully owned by Lucid and enable the company to meet growing international demand for luxury electric vehicles. Lucid also expects to benefit from the availability of competitively-priced commodities and energy, along with a newly emerging domestic supply chain and a factory location that facilitates global logistics.
Lucid further expects to be able to access financing to build and equip the manufacturing facility and to train automotive workers, said Peter Rawlinson, Chief Executive Officer (CEO) and Chief Technology Officer (CTO).
The car manufacturer plans to establish operations at KAEC for re-assembly of Lucid Air vehicle kits that are premanufactured at the company’s US AMP-1 manufacturing facility in Casa Grande, Arizona, and, over time, for production of complete vehicles.
The company expects to manufacture up to 150,000 vehicles per year at the KAEC facility.
Construction of the plant is expected to start in the first half of 2022. Vehicles in the initial phase will be slated for the Saudi Arabian market, but Lucid plans to export finished vehicles to other global markets, including exclusive models designed to appeal to Lucid’s discerning customers in the region and beyond.
The company expects that its production capacity in Arizona and Saudi Arabia will exceed 500,000 vehicles per year in aggregate when each facility reaches its target capacity.
Emaar The Economic City (Emaar EC) inked, on Feb. 27, a development and lease agreement with Lucid LLC at a total value of SAR 113.5 million, according to Argaam.
Under the 25-year contract, Lucid will lease a land plot in KAEC Industrial Valley to build and operate an auto manufacturing and assembly facility with all ancillary services.
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