The inauguration of Saudi Arabia’s maiden car production plant by electric vehicle manufacturer Lucid Group has taken place in the port city of Jeddah.
This facility, designated as the automaker’s second Advanced Manufacturing Plant (AMP-2) and its inaugural international plant, is committed to manufacturing electric vehicles (EVs) both for the Saudi market and for export to various global destinations.
Positioned within the precincts of King Abdullah Economic City (KAEC), the AMP-2 facility will be dedicated to the assembly of the high-end electric sedan, Lucid Air, with an initial production capacity of 5,000 units annually.
“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,” said Peter Rawlinson, the CEO and CTO, Lucid Group.
“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.”
Lucid’s Initial Phase: Reassembling Kits in Arizona
The initial phase involves reassembling Lucid Air vehicle ‘kits’ that are pre-manufactured at the company’s Casa Grande, Arizona production facility. This site will gradually expand its operations to achieve complete vehicle assembly after the mid-point of this decade, with an additional annual capacity of 150,000 cars.
The company has confirmed that the Ministry of Investment of Saudi Arabia, the Saudi Industrial Development Fund, and the KAEC have provided their support for this new facility. Its primary aim is to accelerate the economic diversification strategy of the kingdom while aligning with the Saudi Green Initiative’s target of having 30 per cent of new car sales in the country as electric by 2030.
Located strategically near Jeddah, the plant is set to stimulate the growth of the domestic supply chain, creating opportunities for local suppliers and fostering long-term expansion. AMP-2 will be a driving force for innovation and job creation, nurturing Saudi talent and offering expert skill development training.
In another development, the Public Investment Fund of Saudi Arabia, which holds just over 60 per cent ownership of Lucid, agreed in May to invest $1.8B as part of the luxury EV maker’s private stock offering.
AMP-2 Expansion: Meeting Saudi Arabia’s Demand
The presence of AMP-2 in KAEC, in addition to their existing production facility in Arizona, enables them to efficiently fulfill the recent agreement with Saudi Arabia to supply up to 100,000 vehicles over the next decade, according to Faisal Sultan, vice president and managing director Middle East at Lucid Group.
The Kingdom’s investment in Lucid began in 2018 and evolved to majority ownership when the automaker went public through a merger with a special purpose acquisition company (SPAC) in 2021, according to Gulf Business.
Lucid projects that the location of its inaugural international manufacturing plant in Saudi Arabia could contribute up to $3.4B in market value over a 15-year period.
Notably, Saudi Arabia introduced its electric car brand, Ceer, in November 2022. This joint venture with Taiwan’s Foxconn will design, manufacture, and sell a range of vehicles, including sedans and sports utility vehicles, for consumers in the kingdom and the MENA region.
