Lucid Motors announced a new deal for the construction of AMP-2, a world-class Lucid production factory in Saudi Arabia with a capacity of 155,000 electric vehicles. This deal is with Ministry of Investment of Saudi Arabia (“MISA”), the Saudi Industrial Development Fund (“SIDF”), Emaar, The Economic City, at King Abdullah Economic City (“KAEC”) and Gulf International Bank (“GIB”).
This deal provides financing and incentives to Lucid “up to $3.4 billion in aggregate over the next 15 years to build and operate a manufacturing facility in Saudi Arabia,” Lucid wrote.
Here are the highlights from the press release:
- Lucid’s new factory to bring advanced electric vehicle manufacturing to Saudi Arabia for the first time with a local capacity of 155,000 units
- New Saudi factory expected to address growing global demand for Lucid electric vehicles by increasing Lucid’s global production capacity mid-decade to 500,000 EVs per year
- Helps catalyze the transformation of Saudi Arabia’s economy through Saudi Vision 2030 and the Saudi Green Initiative
- Signing ceremony celebrates agreements estimated to provide financing and incentives to Lucid of up to $3.4 billion in aggregate over the next 15 years
- Government of Saudi Arabia reaffirms commitment to purchase up to 100,000 Lucid electric vehicles over a ten-year period
Saudi Arabia companies are a huge investor in Lucid, owning about 60% of the company. They also recently agreed to buy 100,000 Lucid Air EVs. Saudi Arabia’s public wealth fund holds an approximately 62% stake in the U.S.-based automaker, as noted by CNBC.
Lucid Motors also purchased 120 acres for $17.3 million to expand their factory operations in Arizona this month.
Here are some photos from the event:
“This signing ceremony marks yet another step forward in the realization of Lucid’s mission to inspire the adoption of sustainable energy, and I’m delighted this brand-new manufacturing facility will come to fruition here in Saudi Arabia,” said Peter Rawlinson, Lucid’s CEO and CTO. “I am truly delighted to partner with PIF, our signing partners, and the Government of Saudi Arabia in advancing our shared vision of global sustainability.”
Rawlinson added: “We are thrilled to be supporting Saudi Arabia in achieving its sustainability goals and net-zero ambitions, as outlined in Saudi Vision 2030 and the Saudi Green Initiative, by taking steps to help diversify Saudi Arabia’s economy through the establishment of manufacturing capacity in KAEC for up to 155,000 of Lucid’s zero-emissions, electric vehicles per year.”
His Excellency Eng. Khalid Al-Falih, Minister of Investment of Saudi Arabia, said: “With today’s signing ceremony, we are taking 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, the Minister of Industry and Mineral Resources and Chairman of Saudi Industrial Development Fund (SIDF), stated that the automotive industry in the Kingdom is one of the important sectors supported by the National Industrial Strategy (NIS) since it is one of the complex industries that contribute to the development of supply chains for a wide range of products, noting that all entities of the industry ecosystem are working together to attract investments, including EVs, to the Kingdom. He added: “We look forward to working with Lucid and other leading companies, while continuing to build our global expertise.”
Turqi Al-Nowaiser, PIF’s Deputy Governor and Head of International Investments Division, said: “PIF partners with leading global innovators, like Lucid, to shape the economies of the future and drive the economic transformation of Saudi Arabia in line with Saudi Vision 2030.”
More details are in this press release.