Saturday, December 9, 2023

Saudi Arabia Joins Electric Car Manufacturing Race with Lucid Group


Saudi Arabia has welcomed its first car manufacturing facility, which will produce Lucid Group’s award-winning electric vehicles.

The debut of Lucid’s second advanced manufacturing facility, known as AMP-2, and its inaugural international production hub strategically located in King Abdullah Economic City (KAEC), near Jeddah, aims to be a linchpin in Saudi Arabia’s efforts to modernize and diversify its economic landscape.

Peter Rawlinson, CEO and CTO of Lucid Group, expressed his enthusiasm about the venture: “We are delighted to make history today in Saudi Arabia by opening the country’s first car manufacturing facility, which will produce our award-winning electric vehicles and support the country’s vision for a more sustainable and diversified economy. As Saudi charges toward its Vision 2030, our facility will pave the way for the country’s electric automotive industry and the expansion of the supply chain, and with the support of the Saudi Government, we are proud to drive local talent development in the technology industry. We look forward to delivering Saudi-assembled cars to customers in Saudi Arabia and beyond.”

The Saudi government has been instrumental in the plant’s creation, providing key support through the Ministry of Investment of Saudi Arabia, the Saudi Industrial Development Fund, and the Economic City at KAEC. This collaboration underscores the Kingdom’s earnest ambition to ensure that 30 percent of new car sales are electric by 2030 as part of the Saudi Green Initiative.

Lucid Group EV car factory  in Saudi Arabia
Lucid Group officially opened the first-ever car manufacturing facility in Saudi Arabia. As Lucid’s second Advanced Manufacturing Plant (AMP-2) and first international plant, the facility will produce Lucid’s groundbreaking electric vehicles for Saudi Arabia and export to other markets. | Courtesy

Initially, the AMP-2 facility will engage in semi-knocked-down assembly with an estimated annual production of 5,000 vehicles. These are essentially Lucid Air ‘kits’ pre-manufactured at Lucid’s Casa Grande facility in Arizona. The long-term vision is to transition to complete build-unit production by the middle of the decade, ramping up the facility’s output to 150,000 vehicles annually.

The company says it expects to employ hundreds of local talents in the initial years, with a goal to eventually expand its workforce into the thousands. This is in line with the Saudi government’s Vision 2030, which aims to cultivate a skilled labor force in the technology and manufacturing sectors.

“Today is a proud moment for all of us at Lucid as we play a part in Saudi Arabia’s history and create long-term economic value for the country,” said Faisal Sultan, Vice President and Managing Director Middle East of Lucid Group. “Earlier this year, we were thrilled to introduce the first and most advanced electric vehicle, the Lucid Air, to the Saudi Arabia market. The opening of our facility today marks the beginning of our production operations to assemble our world-class Lucid Air.”

The factory’s prime location near Jeddah promises to bolster the nascent domestic supply chain for the automotive industry. The city’s strategic position on the Red Sea coast provides convenient supply chain access by land and sea, facilitating the export of luxury electric vehicles to other markets in the future.

Lucid’s AMP-2 plant was inaugurated at a high-profile event attended by Saudi dignitaries, including H.E. Yasir O. Al-Rumayyan, Governor of the Public Investment Fund of Saudi Arabia, and other esteemed officials. Notably, a select group of customers also received their Lucid Air vehicles at the event.

As it commences operations, Lucid’s Saudi facility adds a crucial piece to the Kingdom’s ambitious diversification and green plans. Coupled with Saudi Arabia’s robust initiatives for sustainability and economic modernization, the AMP-2 facility stands as a symbol of transformative changes for the Kingdom, offering an inspiring example for other nations contemplating a greener, more diversified future.

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